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COFYR1GHT DEPOSIT 



THE FUTURE OF SOUTH AMERICA 




Copyright by Underwood & Underwood 



AMERICAN GOODS IN THE HARBOR OF CALLAO, PERU 

Frontispiece 



THE FUTURE 
OF SOUTH AMERICA 



BY 



ROGER W. BABSON 



ILLUSTRATED 



N ON-REFER T 




2WVXD-CI3S 



BOSTON 

LITTLE, BROWN, AND COMPANY 

1915 



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Copyright, 1915, 
By Roger W. Babson. 



All rights reserved 
Published, October, 1915 



THE UNIVERSITY PRESS, CAMBRIDGE, U.S.A. 

qgT 15 1915 

© Cf A 4 1 1 9 6 3 







d 






DEDICATED 

TO 

CHARLES H. GATES 



PREFACE 

Owing to the many exceedingly useful books on 
Latin America already published, I hesitate somewhat 
in preparing another. Most if not all of the books now 
issued, however, are written either for the traveler or 
the historian, without special appeal to commercial 
and industrial interests. In view of this I have, during 
the past few years, been systematically collecting in- 
formation regarding Latin America which should be of 
service to those looking at this continent from a money- 
making, rather than from an historical, point of view. 

Although I have personally visited most of the 
countries of South America, I do not pose as a traveler. 
My visits have been short, on strictly business mis- 
sions, and some of the cities about which I have written 
pages I have been in but a short time. Therefore I do 
not attempt to compete with the seasoned traveler nor 
the man who has spent many years in these southern 
republics. 

On the other hand, experience with statistics has 
taught me that often the man who sees countries at a 
distance, one in comparison with another, gets a truer 
perspective than one who has spent his life in a given 
spot. Hence, I believe that this book will be of great 
service to men who are looking for real opportunities 
and who are comparing in their own minds Latin- 

vii 



viii PREFACE 

American opportunities with those in other parts of 
the world. I have tried to be neither pessimistic nor 
optimistic regarding these countries to the south of 
us, but to tell in a simple and frank manner what 
statistics show the future of these countries is to be, 
for, after all, it is the future in which we are interested, 
and not the present or the past. 

In conclusion, I wish to express my deep apprecia- 
tion to the presidents and other officials of these vari- 
ous countries who were so kind to me, to the ambas- 
sadors and ministers, representing both our own country 
and South America, and especially to Mr. John Bar- 
rett and our commercial attaches and consuls. Cer- 
tainly we all owe a great debt of gratitude to these men 
who represent us in strange and distant lands. May 
we do more for them and may we show our apprecia- 
tion in more substantial ways than this. 

R. W. B. 

June, 1915. 



CONTENTS 

Chapter Page 

Preface vii 

I. The Problem of South America . 1 

II. Cuba 10 

III. Porto Rico 36 

IV. Santo Domingo and Hayti .... 47 
V. Other Islands of the Caribbean . 60 

VI. Panama 72 

VII. Venezuela 97 

VIII. Colombia 113 

IX. Ecuador 118 

X. Peru 127 

XI. Bolivia 160 

XII. Chile 165 

XIII. The Strait of Magellan 209 

XIV. Argentina 214 

XV. Paraguay 260 

XVI. Uruguay 267 

XVII. Brazil 287 

XVIII. Mistakes in Our Latin- American 

Trade Relations 335 

XIX. South American Investments . . . 346 

Statistics 358 

Index 383 



LIST OF ILLUSTRATIONS 

American Goods in the Harbor of Callao, 

Peru Frontispiece , 

FACING PAGE 

Havana Harbor from Morro Castle 10 > 

Indian Dugouts on the Chagres River bringing 

Bananas to Gatun, Panama 78 

Hauling Carloads of Cane into the Sugar Mill, 

Caracas, Venezuela 110 

Cacao growing on the Tree, La Clementina, 

Ecuador 124 

Sacks of Ore on the Railway Platform, Cerro 

de Pasco, Peru, and the Mine from which it 

came 140 

Oroya Railway, Peru 146 

View of Valparaiso, Chile 180 

Bird's-eye View of Punta Arenas, Chile, the most 

southern Town in the World 210 

Avenida de Mayo, the main Street of Buenos Aires 218 

A Cattle Train in Argentina 230 

Settlers branding Cattle, Paraguay ...... 260 

One of the busy Streets of Montevideo, Uruguay 268 
Avenida do Rio Branco, the main Street of Rio 

de Janeiro 304 

Bird's-eye View and Harbor of Santos, Brazil . . 310 
Bird's-eye View of Bahia, Brazil, showing the 

Business Section and the Harbor 314 



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THE FUTURE OF SOUTH 
AMERICA 

CHAPTER I 

The Problem of South America 

However much one may read about a continent or 
even a single country, it is impossible to get the whole 
story. The all-important atmosphere of a place can be 
obtained and understood only by a personal visit, and 
even then only after careful study. For some years I 
have been methodically studying South America, and 
have now reached definite conclusions about its possi- 
bilities and some of the difficulties which present them- 
selves in establishing trade relations with the people of 
Latin America. 

We show great ignorance in speaking of South 
America as a unit. It is too large and varied to refer 
to in any such term. Even one country — Brazil — 
is larger than the United States, and its coast line 
would stretch from Boston to Liverpool. Yet there 
are ten different nations in South America — not 
counting the Guianas. 

The various parts of the country present distinct 
problems and possibilities. The table-lands of the 
north, which include Venezuela and Colombia, are 
beautiful, but their utilization is a matter of the 
future. Their good lands are inaccessible, and until 
means of travel are developed, it will not be practi- 
cable for us or our children to use these lands and raise 



2 THE FUTURE OF SOUTH AMERICA 

cattle, coffee, and the like. Excepting for a few cities, 
the prospects of trade in the north are slight and may 
be forgotten for the moment. 

The west coast, including Ecuador, Peru, and north- 
ern Chile, is rich in minerals and nitrates, but the 
agricultural possibilities depend upon irrigation. Con- 
sidering the vast unused areas in other districts which 
do not need irrigation, it is obvious that this stretch 
of country must wait. Hence, with the exception of 
Lima, Antofagasta, and two or three other cities, the 
west coast, north of Valparaiso, may now be ignored 
for sales opportunities. This is especially true so long 
as the present sanitary and political conditions exist. 

Valparaiso and Santiago are good cities. Valparaiso, 
next to San Francisco, is the largest western port on the 
Pacific Ocean. Although a breakwater is under con- 
struction, the harbor is now only an open roadstead, 
and ships must go out to sea when certain storms 
arise. Moreover, the city is built on the side of a moun- 
tain, which together with the prospects of earthquakes 
makes building rather unattractive. Santiago, sit- 
uated less than one hundred miles inland, is an espe- 
cially pleasing city. These two places combined offer a 
good market for our goods. 

The south of Chile is a fine country — fertile, rich 
in timber, and with some coal. There are also good 
rivers suitable for both irrigation and water power. 
But with all these advantages combined, there is not 
a great total. The valley is less than one hundred 
miles wide, and the southernmost part is fit only for 
sheep raising. 

The east coast of South America is another story. 
Every inch of it is fertile, and its vastness surpasses 



THE PROBLEM OF SOUTH AMERICA 3 

comprehension. A large part of the east coast is low 
and humid; the south is too wet and the north is too 
hot. There are insects of all sizes and varieties, and 
snakes of known and unknown kinds. The natives 
vary from the high-grade Argentine scholar to the 
naked, savage Brazilian Indian. However, with all 
these difficulties, I am a great believer in the east coast 
of South America, not only for our children and grand- 
children, but for the present generation. The section 
from Bahia Blanca, Argentina, to Rio de Janeiro, 
Brazil (fifteen hundred miles), extending about four 
hundred miles westward, is a gold mine. It is a tract 
as large as all of our country east of the Mississippi, 
and is worthy of careful study. 

This area includes the best part of Argentina, the 
whole of Uruguay, most of Paraguay, and the southern 
part of Brazil. Argentina is the wonder of America. 
Its farms are beyond description, its cities are the most 
active imaginable. It should become a great customer 
for our goods. Uruguay is a small country, but very 
much alive. Paraguay is rich in timber and cattle 
lands, and as it is inhabited only by Indians, the lands 
are very, very cheap. These countries to-day have 
little manufacturing to speak of, and as for years to 
come they will be great exporters of grain, cattle, and 
their by-products, they will also be great importers of 
manufactured goods. Every live United States manu- 
facturer should have branches in this section, for it is 
on the verge of a great awakening. 

In this section I also include southern Brazil, which 
is my favorite land of all, so far as climate goes. Here 
is a section eight hundred miles long and four hundred 
miles wide, situated on a high plateau. It is healthy, 



4 THE FUTURE OF SOUTH AMERICA 

cool, and compares favorably with any section of any 
land. It is the southern California of South America. 
Sao Paulo is its capital and is also the center of the 
manufacturing industry of South America, with textile 
mills, shoe factories, and other plants. It is now a city 
of about four hundred thousand people and will soon 
have one million inhabitants. 

The only safe way to invest money or to sell goods 
in South America is to arrange to have some person in 
whom you have confidence go there and live. There 
is nothing in flying trips and long-distance control. 
If the people of the United States hope to do anything 
permanent in South America, they must adopt the 
German apprentice system, under which the best 
young men go to foreign fields for periods of ten or 
more years, often marrying native women and some- 
times settling down there for life. Our hasty methods 
have already made us looked down upon as "four- 
flushers and bluffers." We ought either to stop talk- 
ing about South America, or send our young men down 
there to stay and solve the problems seriously, as do 
the young men of Germany and England. 

Concerning the great resources of South America, I 
am fully convinced. Concerning the great opportuni- 
ties there, I have no doubts. The only question which 
troubles me is whether or not we — a democratic 
people with a democratic form of government — can 
develop a successful foreign trade under present con- 
ditions, when force rules the world. The English have 
developed great foreign trade at the point of their guns. 
The Germans have developed great foreign trade 
through subsidies and trusts. The whole foreign trade 
game — as played to-day — is contrary to the fun- 



THE PROBLEM OF SOUTH AMERICA 5 

damental principles of democracy. Considering that 
our government will probably become more rather 
than less democratic, and that the power of the masses 
will gradually become greater, while the influence of 
capital may consequently become less, what is the 
outlook for our foreign trade and investments? Eng- 
land and Germany have adopted " dollar diplomacy" 
accompanied by the "big stick." Will we? I think 
not. 

There are two things which we must absolutely 
have to develop foreign trade with Latin America: 
protection for our investments abroad so that we can 
safely extend credits and start banks, and freedom 
from dependence on foreign ships, cables, and means 
of exchange. 

There are, however, other problems connected with 
South America which one cannot understand fully until 
one has been there. 

Until really studying the situation and the country 
for a long time, I had not realized the importance of 
the Spanish language to citizens of the United States. 
Practically all of our island possessions have come from 
Spain; our neighbors talk Spanish or English; and yet 
our schools are content to teach French and German. 
Spanish is to be a great world language, and it should 
be placed on a par, at least, in our schools with other 
languages, to prepare our children for the great Latin- 
American development which is sure to come. 

What a great impetus it would give to industry in 
the United States if all labor organizations would real- 
ize that increased trade must come before increased 
wages can be maintained! Permanently to raise 
wages there must be an increased demand for labor, 



6 THE FUTURE OF SOUTH AMERICA 

more mills must be built, and more men employed. 
Thus the most fundamental work which labor organi- 
zations can do to bring about their ends is to further 
every plan for extending United States trade and sell- 
ing United States goods throughout the world. For 
this reason the working people should favor the teach- 
ing of Spanish in our schools, the study of markets 
and products, and should indorse all appropriations 
for extending foreign trade. Our education is very 
provincial. The average boy leaving our public schools 
knows no language except English; he has not had a 
lesson in economics, while his knowledge of industrial 
history is nil. 

I had always understood that care must be exercised 
when dealing in the money of South American coun- 
tries, but until having actual experience, I had never 
realized how the currency of the different nations 
varies, and how much the currency of certain countries 
has depreciated. These facts were first really brought 
home to me in Peru. I had been taught that a sol, the 
name of the Peruvian dollar, is exactly one tenth of an 
English pound. Ten soles should, therefore, make a 
pound sterling, approximately $4.86 in gold. When, 
after considerable difficulty, I cashed an express check, 
I was considerably surprised at receiving twelve soles, 
while some of my companions did even better and 
received more. 

In Bolivia, where the boliviano, as the Bolivian dol- 
lar is known, is supposed to be one twelfth of an Eng- 
lish pound, one receives over sixteen bolivianos for a 
United States five-dollar gold piece. In Chile condi- 
tions are even worse. I received sixty-four dollars of 
Chilean paper for a ten-dollar gold piece. 



THE PROBLEM OF SOUTH AMERICA 7 

The following table shows the relations of the money 
of ten South American nations : 







Approximate 


Approximate 


Country 


Name of dollar 


theoretical value 


value in United 






in United States 


States gold in 






money 


1915 


Bolivia .... 


Boliviano 


$0.41 


I0.28-.32 


Venezuela 






Bolivia 


.19 


.18 


Colombia . 






Peso 


.01 


.009 


Ecuador . 






Sucre 


.48 


.45 


Peru . . . 






Sol 


.48 


.44 


Chile . . . 






Peso (paper) 


.36 l 


.15-.20 


Argentina 






Peso (paper) 


.43 


.42-.44 


Brazil . . 






Milreis 


.54 


.28-32 


Paraguay . 






Peso 


.09 


.06 


Uruguay . 






Peso 


1.03 


1.00 



Theoretical; .22 is the better figure. 



Panama and Cuba use United States money; Ja- 
maica and the other English islands use English cur- 
rency. 

It will be seen that all these leading South American 
nations have entirely different monetary systems. 
Some, like Argentina, secure their systems by gold; 
others, like Peru, base theirs on silver; while still 
others, like Chile, simply issue paper currency when 
the government needs money and redeem this cur- 
rency when the government has a surplus. In other 
words, the Chilean notes are simply non-interest-bear- 
ing bonds having uncertain security. 

The money of these different countries should be 
standardized. The monetary systems of all the Latin- 
American countries should be on a gold basis, and the 
dollars of all countries should be on the same scale, 



8 THE FUTURE OF SOUTH AMERICA 

This does not mean that these different countries 
should have the same currency or be obliged to accept 
the currency of another country. I only say that their 
moneys should be based upon gold, and their dollars 
should be interchangeable or multiples. 

Not only are the monetary systems of these coun- 
tries at sixes and sevens, but most of them are directly 
or indirectly based upon the English pound sterling. 
Argentine five-dollar gold pieces are interchangeable 
with English sovereigns. In short, it is difficult to- 
day to find anything which the systems have in com- 
mon, but the English pound is the nearest common 
denominator. So long as this state of affairs continues, 
it is discouraging to talk about " dollar exchange.' ' 
The dollar of every country has a different value and 
none of them bears any fixed relation to our own dollar. 
Not only this, but the banks, controlled by the English 
and Germans, make their chief profit from buying and 
selling exchange. To substitute " dollar exchange" 
for sterling exchange might close up one half the banks 
in South America. I do not mean to suggest that 
"dollar exchange" is not possible and ideal. It is 
both, and such exchange is already in existence. I do 
say, however, that other things are now needed more 
and that "dollar exchange" will not become practicable 
until there are more United States banks in South 
America. 

Like every unsophisticated North American, I had 
supposed that revolutions were at an end in South 
America. The bankers in New York and the diplo- 
mats at Washington have been assuring us for years 
that political conditions in South America are all 
settled, and that no more revolutions will occur. That 



THE PROBLEM OF SOUTH AMERICA 9 

is also what they told us about Mexico. My trips to 
South America have taught me that the days of revolu- 
tions are not over. I had also been fooled by the 
South American use of the term "Republic." Many 
of these South American countries are controlled in a 
way which I do not care to describe. The elections are 
a farce in many instances, and the best men are usually 
outright dictators. In fact, with their present methods 
of elections, I fail to see how a change in administra- 
tion can be brought about there except through a 
revolution. Up to the present time, these revolutions 
have not been harmful to foreign interests, but the 
foreigners think they are compelled to pay graft to 
live. 

In conclusion, I want to add that the people of the 
United States are not getting the truth about Latin 
America. Only the good news is sent out. Still I am 
not bearish on Latin America; I believe that it offers 
great opportunities to manufacturers, merchants, and 
investors of the United States, but I do want my readers 
to proceed with their eyes open. 



CHAPTER II 
Cuba 

The first surprise one always gets when entering the 
harbor of Havana (or Habana, as the Cubans spell it) 
is the architecture of the island. We are apt to think 
of Cuba as new territory and of Havana, Santiago, and 
Matanzas as ''coming cities." When we go to Spain, 
we expect to see low stone houses, with red-tiled roofs 
and pink or blue walls. We do not, however, think of 
seeing a quaint Spanish city within three days' sail 
from New York. 

"How strange and picturesque everything looks!" 
remarked one of a group of American business men, as 
we steamed into the beautiful harbor of Havana and 
passed the famous Morro Castle. "We did not expect 
to see such old Spanish architecture down here. Why, 
one would think we were entering the old port of 
Cadiz, Spain, or passing along the coast of Italy!" 

Yes, this group of American millionaires, owners of 
great mills in the United States — men who are the 
heads of great corporations — had never before real- 
ized that Cuba is almost as old as Spain itself! In fact, 
Cuba is simply "Little Spain," while Havana and the 
other Cuban cities are as truly Spanish as are the 
ancient towns of the old world, about which Columbus 
wandered when a boy. 

I repeat these remarks because they illustrate better 




< 
o 

C 



CUBA 11 

than anything why the United States does not do more 
business in Cuba. The truth is that the American 
people do not know Cuba. The American business man 
and the manufacturers don't know Cuba. Turn to the 
average book about the island, and you will find little 
to show that Cuba is a quaint old land with queer, set 
customs. No, our manufacturers and business men 
think of Cuba as a "new possession/' a new island 
which has just come up from the bottom of the sea, or 
as a territory like Oklahoma which has recently been 
opened for settlement. When we learn to treat the 
Spanish business men of Cuba with the respect and 
consideration to which they are entitled by history 
and position, then our trade relations will change for 
the better. 

And the trade of Cuba is worth getting, for it is the 
most important country of Central America or the 
West Indies, the largest inhabited island in the West- 
ern Hemisphere, and has a history dating back to the 
time of Columbus. It is nearer to the United States 
than any southern country except Mexico, and prob- 
ably has a more stable government. The average 
person does not realize that the island is over seven hun- 
dred and fifty miles long, with a population of fifty-four 
to the square mile, as compared with five to the square 
mile in the average South American country. Cer- 
tainly most business men do not realize that the trade 
of Cuba per capita is greater than that of any other 
country in North and South America except the Argen- 
tine Republic. In a recent year, the commerce per 
inhabitant for Argentina was $108; for Cuba, $100; 
Canada, $^7; Chile, $65; United States, $33; Brazil, 
$23; and Mexico, $17, 



12 THE FUTURE OF SOUTH AMERICA 

Cuba was discovered by Columbus in 1492, and its 
occupation by the Spaniards was practically continu- 
ous until 1898. The one exception was in 1762, when 
Havana was taken by the English and held for a few 
months. It cost the American colonies of Great 
Britain sixteen million dollars, and thirty thousand 
lives, to acquire Cuba at that time, but in the next 
year it was exchanged for Florida. The Spaniards 
found an Indian population of about a million, but 
the natives soon perished, and negro slaves were im- 
ported to take their places in the working of mines 
and plantations. 

In 1848 President Polk authorized the American 
minister to Spain to offer one hundred million dollars 
for the island, but this offer was refused. The revolu- 
tion of 1868 in Spain afforded an opportunity for an 
outbreak in Cuba, and a civil war developed which 
lasted until 1878. This was the "Ten Years' War" 
which ravaged the whole island and was terminated by a 
treaty — "The Peace of Sanjon." 

Important reforms promised by Spain were never 
carried out, so another revolution was organized in 
1895, and conditions became so bad that the United 
States intervened. The campaign which ensued was 
short; the Spaniards were vanquished, and the island 
turned over to the Cubans under the protection of the 
United States Government. In 1902 the new Cuban 
Republic was placed in absolute control, and since 
then, with the exception of 1907, when the United 
States felt called upon to intervene, the Cubans have 
enjoyed their own government. 

The failure of our business men to grasp the geo- 
graphical and historical significance of Cuba is one 



CUBA 13 

reason why the Cubans do not trade with us, but there 
is another : the tradesmen of Cuba dislike us. ' One of 
the leading merchants of Havana told me frankly that 
he would buy from English and German manufacturers 
rather than from those in the United States, prices be- 
ing equal. 

This aroused my curiosity, and the next day I went 
back to see him, and after talking of general matters 
(one should not be so rude with a Latin-American as 
to start right in by talking business) I asked, "Why is 
it that the people of Cuba do not love us?" 

"That question is asked me by almost every man 
whom I meet from your country," he said. "Because 
you sent a few soldiers over here and helped us whip 
the Spaniards when we already had them about 
whipped, is not all of the story. You must remember 
that we had been fighting them for nearly fifty years, 
and that we feel that it was rather revenge for the blow- 
ing up of the Maine that brought you into the war 
than any love for us. However, we'll be generous and 
give you the benefit of the doubt. But how about 
your tariff legislation? 

"You have harmed us more with your iniquitous 
tariff legislation than you helped us with your glorious 
Spanish War. For two centuries the people of this 
island devoted their strength and capital to develop- 
ing the sugar industry. The nations of the world owe 
all they know about sugar to this little island. The 
life of our trade, the value of our land, the employment 
of our people, and the prosperity of all of us were founded 
upon the sugar industry. Moreover, in spite of all our 
troubles and abuses under Spanish rule, we had built 
up a great industry, and our people were fairly well off 



14 THE FUTURE OF SOUTH AMERICA 

and contented. The very fact that we were able to 
fight the Spanish as we did was evidence of our 
prosperity. 

"Our success became the envy of some people in 
your country. Some of these men were honest planta- 
tion owners in Mississippi, Louisiana, and other south- 
ern States; others were land speculators and promoters 
in Utah and your western States. They were deter- 
mined to control the sugar industry. 

"We hold nothing against your people for such am- 
bitions. You had every right to develop sugar plan- 
tations and compete with us in your markets, but you 
should not have used an unjust tariff to accomplish 
such a result. You should have fought a fair fight, 
relying upon your brains, capital, soil, and industry as 
your weapons. You were already on the ground, and 
this gave you an advantage at the start. Why should 
not your people have been satisfied with these advan- 
tages without attempting to resort to unjust tariffs? 
But no, you were in too great a hurry. You were not 
content to grow slowly and fairly. You wished to be- 
come great producers of sugar at once, even although 
it ruined us. Do you call that brotherly love? 

"And ruin us you did. For a long time after the 
enactment of this law, we suffered tremendously. In 
fact, we have never recovered. When the European 
War broke out in 1914, sugar was very low, and the 
industry greatly depressed. Great plantations which 
represent years of labor are still lying idle — all be- 
cause of your selfishness and hurry in endeavoring to 
create a sugar industry too quickly. 

"If you had been content with limiting your imports 
of sugar to their former figures and had even created 



CUBA 15 

legislation so that the increased consumption would 
have gone to your own planters, we would not have 
complained. But you not only demanded the benefit 
of your increased growth, but also stole from us by 
unjust means the industry which we had so labori- 
ously developed." 

I have quoted my Cuban friend at length because 
his remarks bring out a fundamental fact which is at 
the bottom of all our foreign trade relations. Before 
the United States can get the good will of Cuba and the 
rest of the islands in the West Indies, we must revise, 
not so much the tariff, as our tariff principles. We 
must recognize that although we have the right to 
encourage home industries, we have no right to ruin 
the industries of other nations. I am not pleading for 
free trade. So long as other nations erect tariff walls, 
perhaps we must do the same. But should we erect 
tariffs against nations which have not tariffs against 
us? I am not pleading even for general tariff reduc- 
tions. Where foreign nations have built up industries 
with our present tariffs in existence, there may be no 
reason why we should lower them. But after a foreign 
nation has created an industry with the understand- 
ing that our tariff is to be a certain amount, should we 
increase it without the consent of some international 
representative commission? 

It was with the same thought in mind that a member 
of the Cuban Congress once said to me : 

"What kind of hypocrites have you in the United 
States that pray on Sunday for world peace and then 
on Monday talk about capturing the trade of other 
nations and the need of higher tariffs?" 

But to return to the geography of Cuba, which one 




16 THE FUTURE OF SOUTH AMERICA 

should know before an accurate idea of the trade con- 
ditions can be gained. Cuba is really a great garden 
lying ninety miles east of Key West, Florida. The 
island is seven hundred and eighty miles long and 
varies in width from twenty to a hundred miles. It 
has two thousand miles of coast line and a total area 
of about forty-five thousand square miles. With the 
exception of the northern part of Maine, which to-day 
is practically uninhabited, Cuba is as large as the 
whole of New England put together. The State of 
Massachusetts has about one fifth the area of Cuba; 
Vermont and New Hampshire about one fourth, while 
Rhode Island has only about one twentieth of Cuba's 
area. Before one visits Cuba, he has little impression 
of the size of the island. I had not realized that it takes 
twenty-four hours by train or forty-eight hours by 
steamer to go from Havana to Santiago on the other 
side of Cuba. The island is somewhat mountainous, 
for all the West Indies are simply the tops of a high 
range of subterranean mountains projecting above the 
surface of the sea. About one fifth of Cuba is moun- 
tainous and some of the ranges are much higher than 
one would expect, for in the Sierra Maestra range there 
is one peak eighty-three hundred feet above sea level. 
Of the rest of the country, three fifths is made up of 
fertile plains, with scattering hills and valleys, and 
about one fifth is swampy. 

Cuba is sometimes called the " Island of a Hundred 
Harbors/' and certainly she is greatly blessed with 
harbors, which, by the way, are very scarce on the 
coast of South America. More than fifty harbors are 
ports of entry, many of them deep and pouch shaped, 
with narrow entrances completely landlocked. The 



CUBA 17 

entrance to the harbor of Santiago is the most remark- 
able I have ever seen. The city is absolutely invisible 
from the sea, being approached only through a long, 
tortuous channel, six miles in length, the sea opening 
being only six hundred feet wide. Certainly the chief 
cities of Cuba have been determined by the harbors, of 
which that of Havana is the best. The entrance is only 
one thousand feet wide. Good harbors make good 
cities, hence as one travels along the coast of Cuba and 
sees a fine harbor, he may be sure that some day a 
large city will develop there, even though only a few 
negro huts are to be found now. 

There are already several important cities. Havana, 
of course, is the best known, and is located on the north- 
west coast; Santiago de Cuba is located at the south- 
east; Cienfuegos, an important market place, is on the 
southern coast, and Antilla, a new made-to-order town 
like Gary, Indiana, is on the northeastern coast. The 
chief interior cities are Camaguey, Santa Clara, and 
Matanzas. 

Another geographical feature of Cuba which im- 
pressed me is the large number of rivers and streams. 
It is true that most of the rivers are small, but they 
are, nevertheless, of tremendous value. A prominent 
banker of Havana assured me that these rivers number 
two hundred and fifty, the largest ones being El Canto 
and the Sagua la Grande. Otherwise water is scarce, 
for although the total rainfall is heavy, yet it comes all 
at once, and thus far no storage facilities exist. 

In going to a new country, particularly in the tropics, 
the climate must be given careful consideration. 
Winter in Cuba is like our April and May; and summer 
like our July and August — only hotter. However, 



18 THE FUTURE OF SOUTH AMERICA 

it is always possible to get into a breeze. The heat is 
greatly tempered by the wonderful trade winds which 
blow from the northeast with but little variation 
throughout the year. The nights, during both winter 
and summer, are cool. Unfortunately, however, the 
sections of the island which present the greatest oppor- 
tunities for making money are also the most unhealth- 
ful. This applies especially to the coast line during 
the summer season. Yellow fever has been stamped 
out to a great extent, but malaria still rages. There 
have been some cases of plague in Havana, but a sys- 
tematic campaign has been carried on against the 
rats which spread the infection, and the city is destined 
in time to be very healthful, if indeed it may not be 
called so already. 

Employees of Americans whom I have met in the 
tropics tell me that one must be very moderate in his 
diet and take precautions as to exposure either to the 
dampness of night or the heat of midday. The people 
do not go out in the sun as do we foolish North Ameri- 
cans, but plan their work and play to take best advan- 
tage possible of both the breeze and shade. Of course 
there are excessive rains at certain periods of the year, 
and this is especially true during the summer months. 
This rainfall interferes with travel on the country 
roads and is also conducive to malaria. In this con- 
nection, the following remarks of one Cuban may be of 
interest : 

"Neglect of sanitary measures is the chief cause of 
local diseases, but in summertime one is more liable to 
contract them than in the winter. A cool breeze gen- 
erally plays along the coast and frequent 'northers/ 
strong and cool, produce an equivalent of seasonal 



CUBA 19 

changes. Once in a great while the island is visited by 
a hurricane. That of 1846 destroyed nearly two thou- 
sand houses in Havana alone and wrecked three hun- 
dred vessels, while the growing crops, especially in the 
eastern part, have often been leveled to the ground. 
These hurricanes occur, however, in the summer 
months, generally in August and September. " 

In spite of these drawbacks natural to a tropical 
country, Cuba is one of the most healthful countries 
in the world. The mortality among the two million 
five hundred thousand inhabitants in a recent year was 
only 12.6 per thousand, which was lower than that of 
any other country for that year except Australia, 
where the death rate was the same. 

Havana, the capital of Cuba, is the largest and most 
prosperous city, has the best situation, and is, I be- 
lieve, destined to retain its leadership. The old New 
England sea captains used to say that they could always 
find Havana without chart or compass. The harbor 
was so full of filth and debris that one could trust his 
nose as a sure guide to that port. Those were the days 
when monarchy held sway and the Cubans were ex- 
ploited by a few for a few. With the establishment of 
democracy, however, conditions changed, and Havana 
has been steadily and greatly improved during recent 
years. Its streets, although still narrow, have been 
paved and asphalted. There are electric lights, sewers, 
municipal water, and other improvements. Its wide 
boulevard — the Prado — which stretches along the 
water front, is unexcelled, and there are as many 
automobiles as on the boulevards of an American city, 
while the stores of Obispo Street are noted among con- 
noisseurs of jewelry, laces, and other articles of adorn- 



20 THE FUTURE OF SOUTH AMERICA 

ment. The deposits and homes of the leading banks 
are worthy of any large city, as are the libraries, schools, 
churches, theaters, and newspapers. High office build- 
ings are now being erected. Even baseball is played 
with enthusiasm! The American business man is 
lunched at as beautiful a clubhouse as can be found in 
any American city, while the newsboys are as active 
in selling the daily papers as on election night on 
Broadway. The hotels are good, and of course cigar 
factories are found everywhere. Moreover, Havana 
has most beautiful and interesting suburbs which are 
reached by electric lines, as are the suburbs of so many 
of the larger American cities. Although formerly sur- 
rounded by a high wall, Havana has recently expanded 
greatly in size and now contains a population of about 
five hundred and fifty thousand. 

From a sociological point of view, it is interesting to 
note that certain sections of Havana are more densely 
packed than any other city in the world, with the ex- 
ception, perhaps, of certain Chinese cities. What ap- 
plies to Havana in this regard also applies to the other 
large cities of Cuba, and especially to Santiago, Guan- 
tanamo, and Matanzas. 

But Havana on the whole is now a clean and progres- 
sive city, a worthy capital for our worthy cousins. I 
use the term " cousins," because Cuba bears a different 
relation to us from that of any other nation. Cuba is 
an independent democracy with its own president, 
congress, and judiciary. Its people are free citizens, 
with a patriotism and love for flag and country as 
great as that of any people on the face of the globe. 
On the other hand, there exists a treaty between the 
United States and Cuba whereby Cuba agrees not to 



CUBA 21 

do certain things without the consent of the United 
States, and the United States agrees to protect Cuba 
from outside interference, and stand ready, when re- 
quested, to interfere in case of internal revolutions. 

I know of few cities where I would rather buy real 
estate to-day than in Havana. Of course, the customs 
of the country are not ours, and the American busi- 
ness man should learn this and not try to force his 
ideas on the merchants. He won't succeed in the first 
place, and he can't get business except by meeting the 
conditions of trade and life. 

How little some of our manufacturers understand 
the Cuban trade is well illustrated by the statement of 
one of my Spanish- American friends. He said: 

"Are your manufacturers in the United States ab- 
solutely crazy? Do they hope to have a salesman, in 
one week, secure trade which England and Germany 
have been forty years in building up? And yet yes- 
terday I asked a representative of a large Chicago firm 
how he was getting on and he replied: 'Punk! I've 
been here now nearly a week and have secured only 
two orders. There is nothing here. This town is too 
slow for me. I'm going to beat it on the next boat.' 
Now let me ask what that Chicago firm would have 
thought of us if they had been serving us for forty 
years and we had suddenly thrown them over upon the 
first call of a fresh, strange salesman whose principal 
ability seemed to consist in drinking highballs and 
cracking jokes about our people?" 

The Cuban people, and this is true of most Latin- 
Americans, know how to enjoy life and do business at 
the same time. I remember a visit I paid in company 
with a North American manufacturer to one of the 



22 THE FUTURE OF SOUTH AMERICA 

largest commission houses in Havana. We went in one 
of those old-fashioned carryalls such as our fathers 
used to drive, over cobble-stoned streets where the 
paving was laid under Spanish rule many years ago. 
As we reached my Cuban friend's place, my companion 
said: 

"Why, this is n't much of a place, or at least they 
have not much business; it is too quiet." 

Now it was not lack of business which set my friend 
adrift. It was the fact that these Cuban merchants 
and their employees take life calmly and sensibly. 
Instead of working in the hot sun as New York clerks 
are often compelled to do in summertime, people are 
protected by great awnings and curtains hung at the 
outer edges of the sidewalk. 

"Why," he continued, "these clerks look as if they 
were on a vacation — see their light shoes, their white 
clothes, and their comfortable collars ! It looks to me 
as if business was pretty dull." 

But when the Cuban merchant arrived and stated 
his monthly output, my friend was convinced that 
haste does not always signify good business. 

One distinguishing feature of Havana is the market- 
basket habit. The city has three large public markets, 
and every other Cuban city has one or more of com- 
parative importance. In Havana, Tacon is the largest, 
Christina is the oldest, and Colon is the newest. All are 
worth careful study. Here we find on sale the fruits, 
vegetables, and other products of the island. But you 
must not think that the markets of these cities are 
limited to the sale of garden and farm produce. Every 
city in Latin America has some peculiar industry of its 
own; one city makes hats; another city may make 



CUBA 23 

beads, and another baskets. All these products, as 
well as general merchandise, may be found in central 
markets. Men who cannot get space at the public 
market to sell their goods, go about the street with 
pushcarts or on horseback. Everywhere in the morn- 
ing is to be seen the milkman sitting on his horse with 
a big can of milk on each side. Then comes the baker, 
on horseback also, with great baskets of bread. Even 
butchers travel about on horseback. I once saw a 
man riding along with three live pigs hanging from 
one side of the saddle and a string of live chickens 
dangling from the other side. Latin- American children 
are trained to reduce the cost of living by real market- 
ing. Thus we can learn from them something about 
the art of buying as well as of the art of living. 

Mention of the art of living calls to mind the great 
central park in Havana, — a beautiful spot with con- 
crete walks, flower beds, laurel trees cut in formal 
shapes, and statuary. From four o'clock in the after- 
noon until late at night crowds come to this municipal 
playground. Around about are the hotels, restau- 
rants, theaters, clubhouses, and public buildings; but 
the park itself is £ garden and a playground for all the 
people. Almost every evening the municipal band 
plays and the scene is always gay, but lovely and peace- 
ful — much different from the vulgar and flashy 
brightness of our large cities or from the deathly and 
lonesome darkness of the typical country town. I 
know of no city in the United States which gives such 
pleasure to its people, and yet this same scene is being 
repeated every night in hundreds of Latin-American 
cities. As a matter of fact, I do not believe that if we 
had similar playgrounds our people would use them. 



24 THE FUTURE OF SOUTH AMERICA 

We are too busy; too nervous. We don't know how 
to recreate. It is this temper of the Latin- American 
which leads our business men astray in their judg- 
ments of them. 

A trip I always make when I am in Havana is to 
the two forts which guard (?) the entrance to the har- 
bor. On the left as you enter is Morro Castle, a six- 
teenth-century fortress perched on a headland one 
hundred feet above the sea and separated from the 
mainland by a moat seventy feet wide. Below are the 
dungeons which served as prisons for the Cuban pa- 
triots. At one end can be seen the chute down which 
prisoners are said to have been thrown into the " sharks' 
nest" below. Back of the castle are seen the fortifica- 
tions known as Cabanas. Here massive and continu- 
ous walls follow the harbor line. So much time and 
money were consumed in the building of these walls, 
that on their completion in 1774, Carlos III, then king 
of Spain, exclaimed when told of the cost: "Let me go 
to my palace and look for them. Surely if they are as 
great as you represent, they can be seen from here." 

On the right of the entrance to the harbor is Punta 
Castle, begun about two hundred and sixty-five years 
ago. This is located at the end of the Prado and, like 
the fortifications opposite, still serves as barracks for the 
Cuban soldiers. When I last visited this old fort, I was 
much impressed by the remarks of the Cuban officer 
who took me about. Every gun we passed (except a 
little rapid-firing "Colt" down by the entrance) he 
would point to and say: "No good." All the big guns 
he insisted were not only dangerous to load, but could 
not be moved even to aim. As he made this same com- 
ment on every one we came to, I finally asked him how 



CUBA 25 

Havana would be protected in case of trouble, and he 
quickly replied: "By the United States. We have no 
fortifications nor guns. We are depending upon you 
to defend us in case of trouble. You are our 'cousins/ 
don't you know?" 

So far as I can learn, the only modern fortifications 
existing on the island are at Guantanamo, the United 
States naval base, about forty miles east of Santiago. 

The opportunities which Cuba presents to the 
people of the United States may be roughly divided 
into two classes: first, those existing for manufac- 
turers who wish to extend their foreign trade, and to 
whom Cuba offers an excellent market; secondly, those 
for men of moderate means who desire to take up the 
growing of staple foodstuffs. In the first place it must 
be remembered that the United States already con- 
trols half of Cuba's imports and close to eighty-five 
per cent, of her exports. This means that many keen 
United States business men have already availed them- 
selves of this market. In other words, Cuban imports 
from the United States already amount to seventeen 
dollars per capita, and Cuban exports to the United 
States already amount to twenty dollars per capita. 
The chances for increased trade, however, are grow- 
ing steadily, and the opening of the ferry service be- 
tween Havana and Key West inaugurated an era of 
greatly increased possibilities. 

Cuba is immensely rich in its natural resources. 
The annual sugar crop is worth over one hundred mil- 
lion dollars, the tobacco crop about thirty-five million 
dollars; citrus fruits are produced to the value of ten 
million dollars, and pineapple, cacao, honey, asphalt, 
iron, henequen, mahogany, cedar, and the like yield 



26 THE FUTURE OF SOUTH AMERICA 

ten million dollars. Iron is the chief product in the 
field of minerals, and here were found the great cliffs 
of iron ore which were afterward purchased by one of 
the great independent steel companies of our own 
country. In addition to iron, there are gold, copper, 
and manganese in the mountains. The traveler will 
find that his train runs through grand forests contain- 
ing such precious woods as mahogany, cedar, and log- 
wood, with great tracts of banana, orange, and mango 
trees. The government still owns a million and a 
quarter acres available for exploitation, but it is away 
from the railroads, and one must wait patiently for 
transportation. Our nearest competitors for Cuban 
trade are Great Britain, Spain, Germany, and France, 
in the order named. Cuba produces about five billion 
six hundred million pounds of sugar a year. This 
means fifty-six million hundredweight. A cent a 
pound does not mean much to any one who consumes 
only a few pounds a month; but to Cuba that small 
increase in price would mean an additional fifty-six 
million dollars coming in! Moreover, if there is one 
product of the world which is sure to increase in con- 
sumption per capita, it is sugar. Although our people 
consume about eighty pounds a year each, the Eng- 
lish and French now consume only about half this, 
the Germans only about a third, and the Italians only 
about one quarter of this amount. My guess is that 
the world's demand for sugar is sure to increase and 
that our Cuban cousins will some day greatly profit 
thereby. 

In connection with the possibilities for our citi- 
zens in Cuba, the following statement by the secretary 
of the Cuban Legation at Washington is suggestive: 



CUBA 27 

"The Cubans are all purchasers of the necessities, 
comforts, and luxuries. All have money; the working- 
men, farm hands, and laborers get good wages, and 
they spend their money for things they want. Cuba's 
commerce with the United States — exports and im- 
ports together — is much greater than the combined 
commerce of China, Russia, and Africa with the United 
States. A little more than half the imports are from 
this country. A much greater percentage could be 
secured if merchants and manufacturers would make 
the right efforts to secure it. It seems strange that 
proper effort is not made. Information has been given 
for so many years that one would think everybody knew 
what was required to gain and hold Latin- American 
trade, Cuban conditions being similar in the main to 
those of all Central and South American countries. 
Credits, styles and shapes of goods, packing — these 
are the main points in Cuba and elsewhere. Merchants 
and manufacturers may regard the Latin- American 
wishes as mere whims. Call them what you will, they 
must be considered and complied with, if that trade is 
to be captured. There is a much better understanding 
among the Pan-American countries now than ever be- 
fore. We all come nearer being one people than hereto- 
fore, and it is the opportunity of the United States 
greatly to expand her trade with her closer neighbors. 
All the islands and the countries of the Gulf of Mexico 
are likely to see a considerable development from now 
on. When the people of these countries are consumers 
in a like degree as the Cubans are now, the United 
States, if it gets their trade, could not for some time 
make enough goods and articles to export to any other 
countries. 



28 THE FUTURE OF SOUTH AMERICA 

"Our people will continue to be large producers of 
sugar. They know the sugar business, and they like it. 
On rich soil it is not necessary to replant oftener than 
once in twenty years or more, and even on old, worn 
soils replanting is not required oftener than every 
four years." 

With these attractions, it would seem that our manu- 
facturers should get busy and place even more of our 
products in Cuba. To these manufacturers I would, 
however, speak a few words of advice. First of all in 
seeking to increase your trade, send a representative to 
Cuba, who will visit Havana, Matanzas, Santiago, Cien- 
fuegos, and all the other important cities. Don't let 
him be content with visiting Havana. He should 
study the wants and customs of the Cubans, which from 
climatic and other reasons are necessarily different 
from ours. He will have to learn that he cannot force 
any kind of an article on the Cuban. When he comes 
back to your factory, he is very likely to impress on you 
that you cannot acquire and hold the trade of a foreign 
people while you continue to send out fabrics in lengths 
and widths which do not suit these strangers. Certainly 
our North American manufacturers are too set, as a 
rule, in their methods of foreign trading. They want 
the foreigners to accept their styles, measurements, 
weights, and systems of credit. This is all wrong, and 
it is precisely for this reason that European manufac- 
turers have been able to step in under our noses and 
carry off a valuable percentage of the trade. 

I wish again to impress upon manufacturers the ne- 
cessity of sending your own man to Cuba. Bear in 
mind that the expense of a trip to Cuba is not nearly as 
great as the South American journey. Not only are 



CUBA 29 

transportation costs much less, but it is cheaper to live 
in Cuba than in South America. In selecting a man to 
represent you in Cuba, get a good man of your own ac- 
quaintance, who speaks Spanish; pay him a good salary 
and give him full liberty to work out the business in the 
country. This is the only satisfactory method. 

The Cuban Government has expended a considerable 
sum to encourage immigration of the man of moderate 
means who will take up the vocation of raising truck 
and garden produce. In this connection, it has sent out 
reliable information, particularly as to agricultural ad- 
vantages. This work has been greatly needed, as for 
many years irresponsible firms have been sending out 
everywhere alluring and misleading literature con- 
cerning Latin-American opportunities, especially in 
regard to citrus fruit growing. The secret of successful 
farming in Cuba lies in the growing of staple foodstuffs 
and truck, and not in fruit growing. The man who will 
forget citrus growing and who will intelligently buy and 
cultivate a small patch of land, should be rewarded by a 
comfortable subsistence and secure an income here more 
easily than in almost any other place. The only draw- 
back seems to be the pests which have a special fondness 
for temperate vegetables. 

Land, such as is generally considered very satisfac- 
tory for farming in our agricultural States, and which 
is within possible reach of a port, may be purchased in 
Cuba for twenty-five dollars an acre, and the price in 
many cases ranges down as low as ten dollars. Such 
soil is not adapted to the cultivation of oranges or 
tobacco, and therefore it has escaped the fancy prices 
demanded by the owners of citrus land, where prices 
often run from three to five times as high. Moreover, 



30 THE FUTURE OF SOUTH AMERICA 

by growing ordinary garden truck the farmer is avoid- 
ing the high cost incident to establishing and main- 
taining a citrus grove; he is meeting with very little 
competition, and he is assured of a good market for his 
produce, not only in Cuba, but in the eastern markets 
of the United States. 

The soil in Cuba is fine, but a farm or plantation is no 
place in which to raise a family. Farming at best means 
hard work even under good conditions, but where there 
is little enforcement of law, as in the interior of Cuba, the 
chances for the honest North American farmer are slim. 
Moreover, the farmer in Cuba is absolutely dependent 
for his profits upon the railroads, steamships, and mid- 
dlemen. Even the cattle raisers are limited to a local 
market. The United States will not allow cattle to be 
imported into our country on the hoof, and no cold- 
storage plant or canning factory for the beef exists. 

In buying land, one must be very careful about land 
titles, as many Americans have had much trouble. 
Water is a serious question. Even the city of Santiago 
is limited to a few hours of water a day, and during a 
dry spell cattle will drop in price from five cents to 
three cents a pound on the hoof. 

Living conditions in the country districts of Cuba are 
very unsatisfactory. Of course, there are fine American 
colonies in the suburbs of Havana, yet the real oppor- 
tunities are not in the cities, but in the country dis- 
tricts. I believe that there are much better chances for 
a young man in a growing city of the Canadian North- 
west than in the cities of Cuba. To get agricultural 
opportunities in Cuba one must go out into the coun- 
try, and in the tropics this is a very difficult thing to do. 
There are few means of communication; almost no 



CUBA . 31 

schools exist, and one must go through considerable 
hardship to be a pioneer in any country. The land 
near the coast is usually low and unhealthy, while in- 
land the soil is apt to be dry and barren. In other 
words, in the fertile sections it is unhealthy to live, and 
in the healthful sections there are few agricultural op- 
portunities. A single man with good physique and 
plenty of courage could, without a doubt, make con- 
siderable money by going to the tropics and develop- 
ing a farm, a cocoanut plantation, a cattle ranch, or 
something else in the valleys or along the coast. 

If you will visit Cuba and talk with the leaders in 
political and commercial affairs, you will be glad to call 
Cubans your cousins. Whatever the officials may have 
been in the past, they are, at present, a high-grade, in- 
telligent body of men. All the government officials 
with whom I have come in contact, from the door- 
keepers to the President himself, have been able and 
serious men of whom the people of Cuba may well be 
proud. 

The heartiest reception I received in Cuba was at the 
presidential palace. A more homelike, hospitable place 
it is hard to imagine. Although located in the city, it is 
built like all fine southern homes, in the form of a square 
with a garden in the center. Such architecture pro- 
vides both shade and air in the hottest days. In addi- 
tion, each room opens by long French windows upon a 
balcony. Against the windows are both shades and 
shutters. The palace has a great covered sidewalk in 
front where the people may congregate, and opposite 
is an open place suitable for a large gathering. From 
the outside it looks like a city block. 

The President of the Republic of Cuba at that time 



32 THE FUTURE OF SOUTH AMERICA 

was General Mario G. Menocal, a fine-looking man of 
about forty-five years of age, with a black, bushy beard, 
his military bearing telling the story of his service in 
the Revolutionist Army. Said I: 

"Mr. President, I have stopped off at Havana on 
my way to South America to ascertain just what oppor- 
tunities there are to-day in Cuba for people from the 
United States." 

Thereupon the President turned in his chair and re- 
plied : 

"I am very glad that you ask me about business mat- 
ters instead of political affairs, because, as you know, 
I am a plain business man in the sugar industry. I am 
not an expert on political questions. You ask about 
opportunities for Americans in Cuba. Let me tell you 
that they are unlimited. We possess the most fertile 
land of the semi-temperate zone. You good people of 
the United States do not realize the extent of Cuba. 
We have a great stretch of garden land seven hundred 
and eighty miles long. This is nearly the distance be- 
tween Chicago and your Atlantic seaboard. Here al- 
most anything can be raised. We have iron, copper, 
and other minerals. Our rich valleys are adapted to 
the cultivation of the finest tobacco in the world; and 
on our fine pasture lands cattle may graze throughout 
the entire year. Less than twenty per cent, of Cuba is 
under cultivation. The island is now the center of the 
sugar industry, which, when fully developed, can easily 
supply the entire world with sugar. Whenever you 
find a man who wishes to invest money in the finest 
kind of agricultural lands, and really to work them, 
send him to Cuba." 

I then asked: "Mr. President, do you think there 



CUBA 33 

are opportunities in the island for mercantile and man- 
ufacturing industries? As I study the imports, I am 
surprised to see how many things the Cuban people 
import which could be as well manufactured in your 
island." 

To this he replied: "I rather question whether many 
opportunities exist in Cuba for Americans to engage in 
mercantile ventures. Our merchandizing is very well 
handled by the Spanish element in the community. 
These people are thrifty and economical. I know of no 
merchants in the world who surpass the Spanish mer- 
chants whom you see here in Havana. Therefore I 
would not advise Americans to come here with the idea 
of opening stores. 

"When it comes to manufacturing — that is another 
matter. Lying as we do so near your coast, with the 
center of your manufacturing so constantly moving 
southward, Cuba should some day be a hive of indus- 
try. I go further, and say that it should become a great 
industrial center of the Western Hemisphere. Some 
day the island will hum with cotton machinery. There 
will some day be shoe factories, paper mills, steel plants, 
and canning houses in Cuba, such as no man to-day 
dreams of. Moreover, the first to come will make the 
greatest success. 

"I am especially convinced that Cuba is a very safe 
place in which to invest one's money. I think that our 
country has been greatly injured in the eyes of invest- 
ors by certain land promoters from the United States 
who have bought cheap land here and have gone back 
and sold it to your people in small parcels at fabulous 
prices. Tell your people that before buying property 
in Cuba they should come down and see the land. Tell 



34 THE FUTURE OF SOUTH AMERICA 

them to come and consult our government bureau which 
handles such matters. We will gladly give advice as to 
where good land can best be purchased, where good in- 
vestments can be made, and what should be avoided. 
We are all very sorry when any one loses money in 
Cuba, and we want to do everything possible to pre- 
vent such losses. To be successful in this, however, 
persons must come to us for advice before making an 
investment or buying any land, and not wait till 
afterward." 

Most of my friends in Cuba always advise strongly 
against any one going there from the United States 
unless he has capital and is in a proper physical condi- 
tion to stand Cuban climate. Personally I heartily 
commend this advice, believing that the United States 
is the best country in the world for the man without 
capital, and that any such make a great mistake in 
leaving our shores even for an attractive spot like Cuba. 
President Menocal, however, said to me : 

"I don't believe it is necessary for a man to have 
capital to make a success in Cuba. Even to-day, dur- 
ing these hard times, labor is in good demand in the 
sugar industry. The cheapest wage is a dollar a day, 
and there are big opportunities for men with character, 
brains, and muscle. It is with genuine pleasure that I 
view the widespread and deeply-felt interest of the 
American people in their Latin-American brethren. 
This feeling of interest, manifested by the desire to 
bring about closer commercial, political, and economic 
relations between the United States and the Spanish- 
American republics, though natural and logical, has 
long lain dormant, and would, perhaps, have been long 
in finding forceful expression had not the unfortunate 



CUBA 35 

conflict in Europe brought home to all of us the neces- 
sity of drawing still closer together the already friendly 
ties binding our several countries. This is especially 
true of Cuba, between which and the United States, 
even aside from our debt of gratitude, there have always 
existed the most cordial relations." 

The future of Cuba, however, will be determined by 
something more substantial than cordial relations; we 
must give her a square deal. Our future trade with 
Cuba is dependent upon hard work and careful efforts 
on the part of our manufacturers and merchants. 



CHAPTER III 
Porto Rico 

We can never understand the people of Latin 
America until we know more of their history. We think 
of Plymouth Rock and other historic spots as the first 
settlements of the Western Hemisphere, but there were 
well-established towns in the West Indies before Ply- 
mouth was ever heard of. The following table gives 
concisely some of the facts which must be understood 
in order to estimate the commercial possibilities of 
these islands. 

In October, 1492, Columbus first landed on an island 
now grouped with the Bahamas. In the same year he 
visited the north coast of Cuba, while his first real 
settlement was on the island of Hayti. In Santo Do- 
mingo City, Hayti, we find the oldest settlement in the 
Western Hemisphere, which has been in continuous 
existence since its foundation in 1496. Here Columbus 
was imprisoned, and from this place he was carried in 
chains to Spain. 

Jamaica was famous as the headquarters of pirates. 
Port Royal, just outside of Kingston, was known as the 
" wickedest city in the world," until its destruction by 
earthquake in 1692. Jamaica became an English island 
through Admiral Penn, the father of William Penn. 
All these West Indian islands were at one time the prop- 



PORTO RICO 



37 



erty of Spain, but were lost to the British, French, and 
Dutch in the seventeenth and eighteenth centuries. 

Personally, I believe that as long as we live there will 
be no need for us or our children to leave the temperate 



Country 


Area in 

square 

miles 


Population 


Discov- 
ered 


Chief ports 


Cuba .... 


44,164 


2,469,125 


1492 


Havana. 


Hayti and Santo 










Domingo . . 


28,249 


2,629,700 


1492 


Port-au-Prince and 
Santo Domingo City. 


Bahamas . . 


4,404 


57,241 


1492 




Jamaica . . . 


4,200 


831,383 


1494 


Kingston. 


Porto Rico . . 


3,606 


1,118,012 


1493 


San Juan. 


Trinidad . . 


1,754 


333,552 


1498 


Port of Spain. 


Martinique and 










the French Is- 










lands .... 


1,073 


406,430 


1493 


Fort-de-France. 


Leeward Islands 


715 


127,193 


1500 


St. John. 


Windward Is- 










lands .... 


516 


157,264 


1500 


St. George's, Grenada. 


Dutch Islands 


403 


55,183 


1493 


Willemstad, Curacao. 


Barbados . . 


166 


171,982 


1536 


Bridgetown. 


Danish Islands 


138 


27,086 


1493 


Charlotte Amalie. 


Tobogo . . . 


114 


21,406 


1498 


Scarborough. 


Virgin Islands 


58 


4,908 


1493 


Tortola. 


Bermudas . . 


20 


19,935 


1515 


Hamilton. 




89,580 


8,430,400 







zone in order to prosper. Any reader of this book who 
has energy and ability enough to make a success in the 
West Indies can, with the same ability, make a greater 
success by remaining in the United States. If you 
have any doubt on this score, write to a few of our 
consuls. But these islands do offer great opportunities 



38 THE FUTURE OF SOUTH AMERICA 

to our manufacturers who go after the business with 
intelligence. 

One reason why I turn first to the discussion of Cuba 
and Porto Rico is because they are under the influence 
of the United States. In these islands the settler will 
have difficulties enough, but here he will get real 
protection. 

Porto Rico has a great future as a health and pleasure 
resort in winter, and also offers some opportunities for 
trade, but it does not seem to me a land for money mak- 
ing except in a speculative way. It is a lovely spot, 
inhabited by delightful people, and it offers the addi- 
tional attraction of being a colony of the United States. 
The chief port and capital of the island is San Juan, 
with its truly romantic and picturesque harbor. There 
are many San Juans in the southern seas, but this is 
San Juan Bautista, founded and named in 1509 by 
Ponce de Leon, who was governor of Porto Rico at that 
time. The harbor was the scene of one of the most 
pathetic sea stories of England, the story of the last 
voyage of Admiral Hawkins and Francis Drake. These 
great Elizabethan sailors got together a fleet and sailed 
from Plymouth, England, in 1595. The voyage was 
disastrous from beginning to end. After suffering re- 
verses at the Canaries and Marie Galante, the fleet ar- 
rived off San Juan. The aged admiral died when land 
was sighted, and Drake then took command of the 
ships. On a Wednesday, at break of day, the English 
fleet appeared off the forts. After several attacks, in 
which the heretofore invincible Drake was repulsed, 
the English fleet bore away, beaten. 

Porto Rico has scenery, schools, good government, 
attractive climate, and everything except opportunity 



PORTO RICO 39 

for growth. Our young people going to Porto Rico with- 
out money should do one of two things : either hold a 
government job or else work for some North American 
concern. Native labor is paid about sixty-two cents a 
day, and there have been serious labor troubles. 

The principal cities of the island are San Juan, Ponce, 
and Mayaguez. The following description of San Juan 
may be of interest : " It is the only fortified city of Porto 
Rico, situated on a small island at the end of the har- 
bor. The island is two miles in length and half a mile 
in breadth, connected with the mainland by two 
bridges. On the northwest end of this small island is the 
famous Morro, the initial fortification which was begun 
soon after San Juan was founded, but was not finished 
until 1584. Here was the citadel, a small military town 
in itself, with chapel, bakehouse, great water tanks, 
warehouses, officers' headquarters, barracks, bomb- 
proofs, and dungeons near and under the sea. This old 
citadel is but the beginning of the wall which completely 
inclosed the city within a line of connected bastions, 
deep moats, guarded gates, crenelated battlements with 
projecting sentry boxes — in fact, all the defenses of 
medieval times.' ' 

In addition to the great stone walls, some of which 
are nearly a hundred feet high, there are the outlying 
forts of San Antonio and San Geronimo, which guard 
the inland bridges; and on an islet in the harbor is the 
small but strong fort of Canuelo, between which and 
the Morro, less than a thousand yards distant, all large 
ships have to pass to make this port. 

San Juan is the oldest and quaintest possession of the 
United States in the New World, antedating Havana 
by six or seven years and St. Augustine, in Florida, by 



40 THE FUTURE OF SOUTH AMERICA 

more than fifty years. Entering the gateway in the 
walls, the traveler finds the city regularly laid out, with 
six streets running east and west and seven others 
crossing them at right angles. There are two large 
plazas and several smaller squares, called plazuelas, 
which are favorite places for promenades and recre- 
ation. 

The houses are mainly of massive construction, Ori- 
ental-Spanish in appearance, with flat roofs and jutting 
balconies, grilled windows without glass, open patios in 
the center, and, until 1898, with few sanitary conven- 
iences. There was a howl of protest when the conquer- 
ors compelled the house owners to install sanitary 
arrangements where none had ever been before, and to 
connect them with the sewers, which were constructed 
in streets that had previously served as open drains. 
But the work has been done, and San Juan, formerly a 
plague center for disease, is now one of the most cleanly 
of cities. 

Of the thousand and more houses within the walls, 
not more than half are two stories in height, but few 
are three, and all, of course, are chimneyless. The 
streets are paved, and until recently were filthy, for 
water was scarce; but now there is a water supply 
piped into the city from the Rio Piedras, where the 
reservoirs and pumping engines are located. The former 
palace of the Captain-general, now the executive man- 
sion and governmental headquarters, is an imposing 
edifice, taken together with the battlemented platform 
on which it stands. Near it is the Casa Blanca, or 
White House, the ancient castle of Ponce de Leon, the 
oldest and most attractive structure there, with its 
walled garden and surrounding palms. There are many 



PORTO RICO 41 

other fine buildings, some twenty churches, clubs, both 
native and foreign, a casino, a library, and a well-estab- 
lished Young Men's Christian Association. The city is 
well provided with schools and hospitals. The stores 
are numerous and well stocked, formerly entirely with 
European goods, but lately with more of our own 
products. 

There are a number of small towns on the island rang- 
ing in population from a couple of hundred to a couple 
of thousand. These towns are like small New Eng- 
land villages, with two or three stores, a post office and 
a church, although in Porto Rico the church is a Roman 
Catholic edifice of stone of the Spanish type rather than 
the typical New England church with its white paint, 
green blinds, and a high steeple. 

I have been greatly surprised to find Porto Rico so 
thickly populated. The United States has a population 
of about twenty to the square mile, while the popula- 
tion of this island is nearly three hundred to the square 
mile! These people are a mixture of Spanish, negroes, 
and Indian, a race much like the Cubans, but more 
peaceful, as they were not abused so much by Spain. 
Out of a population of a million, about six hundred 
thousand are of Spanish extraction; about sixty thou- 
sand are negroes, and the remainder mixed. These 
people have a contented, indifferent air, and their 
chief occupations are said to be " eating and resting 
and waiting for the sun to set." The feeling toward us 
is not much more friendly than in Cuba. All these coun- 
tries look upon North Americans as intruders. Even 
the Spanish, who treated them so cruelly, are held in 
higher esteem than we are. Yet we have done no differ- 
ently in dictating to these people than England has 



42 THE FUTURE OF SOUTH AMERICA 

done in Jamaica and Trinidad. The fact, however, 
that we pretend to stand for democracy probably makes 
us appear as hypocrites in their eyes. Instead of look- 
ing at us as liberators, they feel that we have stolen their 
island. As a result of the Spanish War, Porto Rico was 
ceded to the United States, but we have not yet given 
citizenship to the Porto Ricans, although if we do not 
soon grant it there is sure to be trouble. 

Porto Rico originally had as many natural advantages 
as any of the West Indies. It is fairly high, gradually 
rising toward the center, which consists of a moun- 
tain some four thousand feet in altitude. The hills are 
partly wooded, and there are many fertile valleys. The 
island is also blessed with many rivers and streams, 
although these are not navigable. This high land has 
made this island much more healthful than some of the 
others, as there are few swampy sections. 

Although the temperature is tropical, yet it is fairly 
even, the average being about eighty. The thermom- 
eter will run up to a hundred during the heat of the day 
and fall considerably at night. The variations of ele- 
vation, make it possible to enjoy almost any tempera- 
ture one desires, as it is hot in the low lands and cool 
on the mountains. The customary trade winds make 
the nights pleasant and also add to comfort in the 
shade, even during the hottest days. On the other hand, 
these trade winds sometimes develop into terrific hurri- 
canes during certain seasons of the year, especially in 
summer, and they have caused great disasters. 

The fact that things which come easy are of little 
value, while those which are difficult possess great 
possibilities, cannot be better illustrated than by the 
comparison of opportunities in Porto Rico and in the 



PORTO RICO 43 

island of Hayti. The climate in Porto Rico, as has 
been said, is attractive, the laws are just, the island is 
fully policed; good postal service, schools, and trans- 
portation exist, but the cream has been skimmed! 
The very fact that these good conditions prevail has 
caused most of the opportunities for making money to 
be seized. It is true that a man is safer in Porto Rico 
than in New York City, but it is likewise true that in 
the latter place he has a greater opportunity to make 
money. Things come easy in Porto Rico; things are 
hard in Hayti, but there the soldier of fortune has 
unlimited opportunities. 

Of course Porto Rico has certain attractions, es- 
pecially to the traveler who for the first time gazes 
upon its palm-bordered shores; but for the young 
American with a little capital, who desires to strike 
out and make a dent in the world, there are better 
opportunities elsewhere. I admit that the soil is 
fertile; in fact, all the tropical fruits, flowers, and 
trees grow spontaneously. The soil is even remarkably 
rich, having been cultivated for centuries in coffee, 
bananas, and sugar-cane. The island is really the 
home of the coffee and tobacco industry, and some of 
the valleys to-day produce the best coffee berries in 
existence. Owing to the aid given by wealthy American 
interests, sugar-cane is now the leading crop, coffee 
and tobacco following after, with an increasing tend- 
ency to grow citrus fruits. 

The land, however, is practically all taken up; the 
forests sell as high as does land in northern Maine. 
There is little mineral wealth in the island, and the 
chief resource is agriculture. Now agricultural land 
is all right if it can be obtained at a small price, but the 



44 THE FUTURE OF SOUTH AMERICA 

profit in agriculture comes not from raising crops, but 
from the increase in the price of land which comes 
through proper development. Hence, if one must pay 
much money for land and depend upon the crops for 
profit, there is no remarkable opportunity. 

Porto Rico has less than one hundred thousand acres 
of public land left, and if an investor goes to Porto Rico 
to operate a large farm to-day, he must pay a good 
price for it. Plantations easily accessible are selling 
for one hundred and fifty dollars an acre, while others, 
away from the coast, are quoted at about one hundred 
dollars an acre. To a young man with little capital 
these prices are not attractive. 

After the delightful way in which I have been enter- 
tained on the island, these statements doubtless seem 
ungrateful. Many bright young people have gone there 
from the " States" and are leading happy lives on the 
plantations outside of San Juan. It is a delightful life, 
and I envy them all ! However, I can but feel that this 
is a life rather for those who already have money than 
for those who are trying to make their fortune. 

The future of Porto Rico is as a great winter resort. 
Its healthful climate, beautiful roads, and other at- 
tractions will make it a great rival of Florida. In view 
of this, I advise the purchase of high lands rather than 
the low lands, with simply fruit raising in mind. The 
greatest profits are coming to the owners of cheap lands 
which will some day be sought by winter residents 
rather than to the owners of very expensive lands suit- 
able only for fruit culture. 

Porto Rico has not yet been brought to the attention 
of our exporters and manufacturers to any great extent, 
yet the island offers some market for manufacturers. 



PORTO RICO 45 

In the textile line, practically everything must be 
brought to the island, because no textiles to speak of 
are manufactured there, and supplies come principally 
from the United States. Small quantities of goods still 
come from Spain, but in such insignificant amounts that 
they are not worth considering. The market for the 
higher classes of goods has not developed, and the manu- 
facturer of such goods will have difficulty in getting a 
satisfactory trade. 

Porto Rican merchants to-day want only cheap 
goods. The value and style are not generally given 
much consideration, as long as the merchandise is low 
in price. This also applies to most West Indian and 
Central American merchants. Many of them have 
formed the habit of asking for "lottes" (job lots), and 
judging from the appearance of their stocks, they have 
been supplied with this class of merchandise in big 
quantities. Stores in interior towns have their shelves 
filled with shoes and hosiery that have been out of date 
in the United States for years, all going to show that no 
matter how much out of style an article is, it may have 
a ready sale in these islands at a low price. 

Therefore the house that handles the higher grades of 
merchandise finds itself at an immediate disadvantage, 
and can hope to make a large outlet for its goods only 
through educating the masses to better stuff. You 
must show the distributing agents that it is more satis- 
factory to themselves, to the retailer, and to the con- 
sumer to use good merchandise, and you must bring it 
about that the children of the schools go shod instead 
of barefoot as now. This does not mean that trading 
in job lots is not a perfectly legitimate proposition, so 
long as the goods are not represented as " firsts" when 



46 THE FUTURE OF SOUTH AMERICA 

they are really " seconds," or when an out-of-date style 
is not claimed as the latest one. 

In conclusion, let me mention how rapidly the Ameri- 
can idea of dress is being adopted in the tropics, which, 
of course, is going to be a great factor in developing the 
demands of the Porto Ricans. Enterprising bankers 
are seeing the advantage of making strong connections 
with the mercantile interests of the island. A market 
for money at ten or twelve per cent, is had readily, and 
many of the prominent Canadian bankers have well- 
established branches in the principal cities. They have 
been more alert in this matter than have the bankers 
of the United States. Perhaps our bankers can find here 
an outlet for surplus funds in a country under the protec- 
tion of the United States. Certainly the money situa- 
tion should not continue to be controlled by foreign 
bankers, as at present. These same comments might be 
made concerning any of the Latin- American countries 
within our sphere of influence. The truth is that in 
developing our own country we are active and indus- 
trious, but in going to other lands we are lazy and indif- 
ferent. Whether we are justified in being lazy may be 
debatable, but we certainly are not justified in being 
indifferent. Surely, if Porto Rico is to have a bright 
future, we must concern ourselves with its develop- 
ment. In taking over the island, we assumed a respon- 
sibility, and Porto Rico's future depends upon our 
recognizing the responsibility and dealing with her 
justly. 



CHAPTER IV 
Santo Domingo and Hayti 

Santo Domingo and Hayti are lands of golden op- 
portunities for young men who are willing to take a 
chance and suffer hardship. This island of Hayti, situ- 
ated a few miles from Porto Rico, offers a better out- 
look than ever existed in our great West. Financial 
history teaches that money is made most rapidly by 
doing what the average person does not want to do, 
that is, by not following the crowd. The most success- 
ful investor is he who buys securities during times of 
panic when every one else wishes to sell, and who sells 
when every one else is buying. Having seen so many 
illustrations of success coming to men who do the unu- 
sual or unpopular thing, I naturally have been impressed 
with the island containing those two so-called republics 
— Santo Domingo and Hayti. Here the most wonder- 
ful virgin opportunities lie untouched. Whether one 
considers gold or silver, iron or copper, primeval for- 
ests or fertile valleys, they can all be obtained in this 
island for the asking. 

I know of no better place to which a man can go with 
the combined possibility of obtaining wealth and ren- 
dering service than to Santo Domingo. Not only are 
the natural resources great, but there is no one who 
wants them. The people are uneducated; the cities 
are dirty; communication is practically nil, and the 



48 THE FUTURE OF SOUTH AMERICA 

entire island looks like a deserted, but once beautiful, 
garden. Of course the government is wretched; there 
are no conveniences or modern improvements, and it 
is the last place where one would want to bring up a 
family. On the other hand, merchandise does not look 
attractive to the merchant during a business depres- 
sion, nor do stocks look attractive to the average in- 
vestor during a panic. Santo Domingo and Hayti are 
to-day physically and politically in a state of depres- 
sion and panic, and the island has been in such a con- 
dition for so long a time that it looks as if the corner 
had been turned. 

Paradoxical as it may seem, the capital of Santo 
Domingo, or Santo Domingo City, is both the oldest 
and the most backward city of the Western Hemi- 
sphere, with the possible exception of Port-au-Prince, 
the capital of Hayti. Columbus went to Santo Domingo 
and made a real settlement in 1496, after his brother 
had chosen the site for a city. Columbus once owned a 
house there, together with a tower which he built to 
command the city. The chapel which he used to attend 
still stands on the left bank of the Ozama River, oppo- 
site the city. It is interesting to realize that the first 
land discovered in this hemisphere will probably be the 
last to be developed. At any rate, it is to-day the most 
backward place in this section of the world. 

The island is divided into two parts. Santo Domingo 
occupies the eastern portion and contains about eight- 
een thousand square miles of the total area of the 
island. The remainder, or about ten thousand square 
miles, is occupied by Hayti. The island is the most 
mountainous of the West Indies and contains the high- 
est peaks, one of which is eleven thousand feet in alti- 



SANTO DOMINGO AND HAYTI 49 

tude. Like Cuba, it has many wonderful harbors, a 
number of which are not yet developed. As some of 
these harbors are at the mouth of rivers running 
through most fertile and beautiful valleys, it seems as 
if there were many opportunities for founding cities 
which will some day be of great importance. In fact, 
as the steamer goes along the coast, one notices beauti- 
ful landlocked harbors without a human being in sight. 

The population of the entire island is probably about 
two millions, of which one quarter lives in Santo Do- 
mingo and about three quarters in Hayti. As Santo 
Domingo with the smaller population has double the 
area, it is natural to suppose that its population is 
superior to the Haytian population. In fact, there is 
almost no comparison between the two, for the Santo 
Dominicans have a good amount of Spanish blood in 
their veins; while the towns of Mocha and Caballeros 
are noted for their fair and attractive women. 

The island apparently was most prosperous several 
centuries ago, and the people say that it was really 
better when it was being exploited by the Spanish, 
Dutch, and French than at the present time. But the 
representatives of these " civilized" nations so wickedly 
oppressed the natives and abused the slaves they had 
imported from Africa that the negroes arose in a mass 
and almost annihilated all the white people. It is true 
that the island is noted for its revolutions, but the habit 
of revolting was forced upon these people. 

If I were going to this island to take a chance, I 
naturally would go first to Santo Domingo. This 
would be strange and raw enough for a starter, and it 
certainly has better ripe opportunities than any other 
spot in the West Indies. Santo Domingo is more hos- 



50 THE FUTURE OF SOUTH AMERICA 

pit able to strangers than is Hayti, sanitary conditions 
are much better, and there are various other reasons 
why I would land and probably settle first in Santo 
Domingo. 

On the other hand, the greatest opportunity for serv- 
ice and profit may be in Hayti, and after becoming 
acclimated and acquainted with the language, I would 
examine thoroughly conditions in the western part of 
the island. At present foreigners cannot own land in 
Hayti, for this is the only way the poor Haytians can 
keep from being drawn into slavery. The new genera- 
tion, however, is of a different character from that of its 
fathers, and conditions may soon be changed so that 
Americans will be permitted to own land and will be 
invited to develop the country. When that time comes, 
the men who are first on the ground will get the most 
valuable prizes, whether they consist of virgin forests 
or undiscovered gold mines. 

The first gold sent from America to Spain came from 
this island. One writer says on this point : 

"Gold was first seen by Columbus on the north coast 
of Hayti, but not until he had reached and entered the 
mouth of the Yaqui River did he discover the precious 
metal in any quantity. There his men, when filling 
their water casks, saw clinging to the hoops of the casks 
glittering particles, which proved to be gold. Flakes 
and nuggets had been given to the Spaniards by the 
Indians of Hayti, but when questioned as to the aurif- 
erous region, they always pointed to the mountains of 
Santo Domingo. In these mountains at or near the 
headwaters of the Yaqui, in a region then and now 
known as the Cibao, the Spaniards found an immense 
amount of gold in dust and nuggets." 



SANTO DOMINGO AND HAYTI 51 

It is a common saying in the islands that the district 
where gold is not found is the exception rather than the 
rule, leaving out of the reckoning, of course, the recent 
coralline formations. The central cordillera is threaded 
with veins of gold-bearing quartz, but the richest de- 
posits are found in the placers in various parts of the 
territory. Numerous mines have been started in sec- 
tions of the cordilleras, but no deposits have been found 
to equal those exploited by the Spaniards. 

Some silver has been found, but a much greater 
quantity of copper ore. Iron also is abundant, but it is 
not mined to any extent, and the same may be said 
about coal, which, however, is not of the best quality. 
Petroleum has been discovered in great volume on the 
southern coast, where the first well opened gushed to 
the height of seventy feet. It is believed to be in a zone 
or belt connecting, perhaps, with an extended area 
which embraces the oil-producing regions of North and 
South America. 

Among other resources, the island is said to possess a 
mountain of pure crystal salt, and some precious stones 
have been found. But tropical fruits, vegetables, and 
forest products are of greater value than all the mineral 
resources combined, for the varying altitude beneath 
the hot sun bestows upon the island every variety of 
tree and shrub and plant. All the tropical fruits may 
be grown along the coast and far up into the mountains, 
where their places are taken by semi-temperate and 
temperate fruits. These fruits range from bananas to 
strawberries, the vegetables from yams to cabbages 
and potatoes, a different fruit or vegetable being pos- 
sible for every degree of temperature as measured by 
altitude. 



52 THE FUTURE OF SOUTH AMERICA 

Sugar-cane, cacao, cocoanuts, coffee, vanilla, tobacco, 
and the like grow along the coast luxuriantly, and in 
the forests may be found dyewoods and rare cabinet 
woods such as mahogany and cedar. 

There are almost no manufactures in the island. 
Taxes are low, and the revenue is derived from imports 
and exports, which amount approximately to five mil- 
lions and seven millions per annum. Since 1905, the 
customs have been collected by officials under the 
United States Government, fifty-five per cent, being 
banked in New York for the benefit of foreign creditors. 
This arrangement was sanctioned by the treaty of 
1907, but it is much more to the satisfaction of the for- 
eign creditor than to the natives, who bitterly resent 
this intrusion, as they call it, though not to the extent 
of combating it by force of arms. 

Possessing a fine climate, " which varies but little from 
seventy to eighty degrees the year through," and to a 
great extent exempt from cyclones and earthquakes, 
this island should be occupied by a more numerous pop- 
ulation than it is to-day. Although the Haytians are 
still fearful of foreigners, yet the Dominicans welcome 
foreign capital and immigration. They are not averse 
to modern improvements, moral or material, and one 
reason they have not made greater progress is their iso- 
lation, another being the disturbed state of their coun- 
try for many years past. 

Before visiting the island, I did not realize that a place 
could exist so near New York with such wretched means 
of communication as has Santo Domingo. Highways 
suitable for carriages and wagons are practically un- 
known, all travel being either on horse, donkey-back, 
or on foot. In the rainy season, that is, during the sum- 



SANTO DOMINGO AND HAYTI 53 

mer and early autumn, even such travel is almost im- 
possible, for these paths contain pits sometimes two 
or three feet in depth, worn by the hoofs of countless 
animals. 

At the present time there are only four worth-while 
railroads in the island, and these are mere toys com- 
pared with the possibilities. Two of these roads are in 
the Santo Domingo end, both leading inland from 
harbors; one from the port of Sanshaz, about one hun- 
dred miles in length, and the other connecting Puerto 
Plata with Santiago de los Caballeros. Another road is 
being built, and several concessions have been granted 
providing for other lines. 

Much to my surprise, the island has a good telephone 
and telegraph system, connecting all of the principal 
cities. A good postal system has been established, and 
Santo Domingo belongs to the Postal Union. 

Puerto Plata has an intelligent population, and this 
is the place where the young American should go first 
to get the lay of the land. Many foreigners are al- 
ready located in this city, and since the opening of the 
new railroad referred to above, Puerto Plata has be- 
come quite a lively town. Certainly it is beautifully 
situated on a picturesque peninsula at the foot of a high 
mountain. It is well drained and probably healthful; 
in fact, it compares very favorably with many unde- 
veloped cities of other nations. Whether the railroad 
has made Puerto Plata or whether Puerto Plata has 
made the railroad, I do not know. When, however, it 
is considered that this road has only a thirty-inch 
gauge, is only forty-two miles long, and has taken three 
nationalities — Belgians, Germans, and Americans — to 
build, it certainly deserves more than passing notice. 



54 THE FUTURE OF SOUTH AMERICA 

I tried to get figures showing the earnings of this road, 
but failed. I am satisfied, however, that despite all the 
revolutions and ignorance on this island, I might be 
tempted to invest money in the bonds of some new 
Santo Domingo railroads rather than in the common 
stock of some old lines in the United States. 

It seems like a romance, but I really believe that a 
young man with one hundred thousand dollars could 
go to this island, select a harbor equal to that of Boston, 
build a railroad and own a city, if he simply had courage 
and tact. There is no opportunity for long lines, but 
there are numerous opportunities for short roads oper- 
ating from ten to fifty miles, all of which some day are 
sure to be combined into one big system. Moreover, 
the men who build these railroads will have first claim 
on the virgin country through which they pass, with 
the products of timber, gold, and tropical fruits. 

I have visited many countries in my travels. Some 
have wonderful physical opportunities, but have no 
population; others have a horde of people, but have 
no natural resources. Here is an island abounding with 
people and crammed full of natural resources, but 
without stable government or means of communica- 
tion. The first, namely, the stable government, is 
sure to come, and the men who develop the railroads in 
conjunction with the improvement of the government 
are sure to reap a harvest and also to perform a great 
service to the people. At present the cities can be 
reached only by slow vessels which ply irregularly from 
port to port, or by almost impossible trips across the 
island by mule. 

Many feel that before this island can enjoy a stable 
government, additional means of communication, or 



SANTO DOMINGO AND HAYTI 55 

almost any advantage, it must have the advantages of 
religion and education, if these two can be readily 
separated. I cannot speak with authority about the 
religion of the " Black Republic." Certainly I have 
been told some strange stories; these are stories which 
have principally accounted for the backward state of 
affairs. 

Just what work Christian missionaries are doing 
among these people I do not know; but certainly there 
must be a great opportunity. At any rate, the great 
needs of the hour are education and religion. I care 
not which comes first, the other is bound to follow. 
Moreover, until both come, this will continue to be the 
most backward portion of the Western Hemisphere. 

I therefore say that a great opportunity exists to-day 
for that soldier of fortune who, with a proper amount of 
religion, education, and capital, will go to this island 
and develop it as he would a great industry, keeping in 
mind continually that success can come only by perform- 
ing service. On the other hand, readers must not forget 
that such a man will be blocked, discouraged, and per- 
haps subjected to great hardships. The very reason 
that great opportunities exist is because conditions at 
present are wretched, the place is deserted by foreign- 
ers, and because no one knows much about what there 
really is in the center of the island. 

Above I have referred to the two principal cities of 
Santo Domingo, its capital, Santo Domingo City, and 
Puerto Plata, one of the most thriving seaports. As 
an illustration of the relative development of Hayti 
compared with Santo Domingo, the following descrip- 
tion of Port-au-Prince, Hayti's principal city, is of 
interest : 



56 THE FUTURE OF SOUTH AMERICA 

"The capital and largest city of Hayti, Port-au- 
Prince, sometimes called Port Republican, lies at the 
head of a deep gulf on a slope facing west and con- 
tains between sixty and seventy thousand inhabitants. 
Owing to the contiguity to a vast and fertile region 
that needs only intelligent cultivation to become a 
treasure house of great wealth, its natural advantages 
are great, but in the matter of ministering to the needs 
or demands of travelers it is lamentably lacking." 

It has been said, and with feeling, by some who have 
been compelled to remain in the city any length of time, 
that no one would go there who was not compelled to. 
Said an officer of the French navy who was there at 
intervals during forty years: "In my acquaintance, 
the city has not changed in all that time except to be- 
come more wretched and dirty." 

It may still be said, as was remarked by a traveler 
many years ago: "The gutters are open pools of 
stagnant and fetid water, obstruct the streets every- 
where, and constantly receive accessions from the in- 
habitants' use of them as cesspools and sewers. There 
are few good buildings in the town, and none in the 
country, the torch of the incendiary having been ap- 
plied at short intervals, and no encouragement is offered 
to rebuild, either through protection of the government 
or local enterprise. It is also as true of Port-au-Prince as 
Cape Haitien, that buildings destroyed by earthquake 
or fire are rarely replaced, and the nearest approach to 
rebuilding is seen in a slab shanty leaning against the 
ruins of a larger structure." 

These same conditions I find exist to-day. Port-au- 
Prince is now a half-ruined city, with a few buildings 
which once were fine, as the government palace on the 



SANTO DOMINGO AND HAYTI 57 

Champs cle Mars and the barnlike cathedral, where, 
in order to gratify the sentiment of the people, saints 
and virgins are painted black or brown, the prevailing 
hue of the population. An authority on the city says : 

"The finest building in the city was formerly the 
national palace, a rambling, one-story structure of brick 
and wood. It is the official residence of the president 
of the republic, who ' receives' on certain days, when 
visitors are allowed to approach his 'Excellency/ who 
is guarded by soldiers and sometimes surrounded by 
members of his staff. This palace occupies the seaward 
front of a neglected field ambitiously called the Champs 
de Mars, upon which are occasionally displayed the 
ragged remnants of the Haytian time. 

"The city is generally in a state of siege, or under 
martial law, and barefooted soldiers, ragged and dirty, 
may be seen standing guard on every corner, while 
Gatling guns adorn the squares and even the corridors 
of the palace. It is very likely that the visitor will have 
his attention drawn to these men of Mars, for as their 
pay is scanty and rarely forthcoming at that, they are 
forced to appeal to charity when off duty and make 
their rounds of the city hat in hand for chance con- 
tributions. 

"The market places are large enough and were origi- 
nally well situated, but like all other municipal con- 
structions, they are allowed to become deposits of filth 
until the rains of the wet season wash them clean. 
They are worth visiting, even if for no other purpose 
than to study the Haytianized Africans from the coun- 
try, who come in with fruits and vegetables, sometimes 
with meats. The meats are poor; the fruits delicious. 
There is rarely any beef to be had in Hayti of a quality 



58 THE FUTURE OF SOUTH AMERICA 

good enough for consumption by the visitor, and the 
so-called mutton is usually derived from goats. 

"The hotels of Port-au-Prince partake of that inter- 
mittent character begotten by frequent revolutions and 
change of government and, in fact, there is but one good 
hotel in the city. ... It is old and ramshackle, but its 
meals are, or were, excellent and well served. Still 
the visitor is advised not to linger in this city unless 
he meets some of the few white people here who might 
invite him to their country seats at La Coupe, about 
five miles in the hills. 

"La Coupe is the summer or warm-weather residence 
of the wealthier class of Port-au-Prince and presents 
somewhat the appearance of a well-to-do suburb of an 
island better favored in its inhabitants than Hayti. 
It lies at an altitude of twelve hundred feet above the 
sea and the views over the great bay, especially at 
sunset and by moonlight, are superb. The temperature 
here is several degrees below that of the city, which 
hangs around the nineties, for a cool breeze is playing 
all the time." 

As stated, I strongly advise an American going to 
this island to take a steamer to Puerto Plata, on the 
north coast, and not to bother with the city of Port-au- 
Prince or the city of Santo Domingo. Puerto Plata is 
an enterprising place, and the center of a very rich and 
fertile country, where land can be purchased at from 
ten to forty dollars a carreau, which is three and 
one third acres. In other words, better land can be 
obtained in this island at from three to twelve dollars 
an acre than can be bought in Cuba for triple that 
sum. In fact, the rainfall and wonderful soil will some 
day make this island far richer than Cuba, and the 



SANTO DOMINGO AND HAYTI 59 

inconveniences are not enough greater to offset the 
difference in the price of the land. 

Before attempting to do business in this island, one 
should study French for, as in Martinique, it is both 
the native and business tongue. Moreover, as also in 
Martinique, the franc is the standard coin; although, 
as in all these islands, our United States dollar bill is 
exceedingly acceptable. But outside of the language 
and currency, there is little to remind one of France 
in this island, especially in the western end, with its 
black Republic. 

The future of Santo Domingo and Hayti will be 
bright as soon as they have a sufficient number of 
industrious and conscientious immigrants. Under the 
new United States influence, such a time should soon 
be here. 



CHAPTER V 

Other Islands of the Caribbean 

Jamaica 

Jamaica is the third in size of the West Indies, ex- 
ceeded only by Cuba and Hayti. It has an area of over 
four thousand square miles, being about one hundred 
and fifty miles long and fifty miles wide at its extreme 
measurement. It has been under English control for 
a long time, and for this reason is pretty well devel- 
oped. Order reigns throughout the island, and it is 
probably the safest place in the West Indies in which 
to live, with the exception of Porto Rico. The island 
has a certain government of its own, it operates its own 
railroad system, and has many departments for the 
encouragement of agriculture and industry. The cli- 
mate is strictly tropical. Formerly sugar was the chief 
product, and when crossing the island the traveler even 
now sees the remains of many old sugar mills and 
abandoned plantations. 

At the present time, the important industry of Ja- 
maica is the raising of bananas. This has been greatly 
developed by the United Fruit Company, which owns 
or leases about sixty thousand acres and takes the prod- 
uct from several thousand additional acres. This com- 
pany employs nearly seven thousand men, and ships 
about five million bunches of bananas a year. The 
United Fruit Company, like the Standard Oil Com- 



OTHER ISLANDS OF THE CARIBBEAN 61 

pany, is a distributor rather than a producer. Its mo- 
nopoly consists in its remarkable service of collecting the 
fruit, paying cash, and selling it in New York, Boston, 
Philadelphia, Baltimore, and other points. Nearly 
every day the United Fruit steamers call at each little 
port, so that the native may always be sure of the most 
perfect system of shipment. Of course a good profit is 
charged for such a service. The natives receive only 
from twenty-five to fifty cents per bunch for these 
bananas, according to the time of year. The reliability 
and certainty of this service have given the natives a 
tremendous confidence in this company, and the same is 
true in Cuba and Costa Rica, where it also does business. 

The company is now beginning merchandizing and 
is opening stores so as to sell goods as well as buy. 
They probably are doing this in order to have freight 
from the United States to the West Indies as well as 
from the West Indies to the United States. This policy 
should benefit the people. It seems to me that here is 
an opportunity whereby manufacturers may easily 
obtain a foothold in the West Indies, for it should be 
possible to make arrangements with the United Fruit 
Company to exhibit and sell United States goods. 

Other than the banana industry, cocoanut raising 
seems to be profitable in Jamaica. As a large part of 
the island is dry, and cocoanuts need less moisture than 
bananas, it is probable that more cocoanut plantations 
will be started in the future. 

The principal city of Jamaica is Kingston, on the 
southern coast, with a population of sixty thousand. 
This place has been practically rebuilt since the earth- 
quake of 1907, and now appears as a modern and pros- 
perous city with a half-decent harbor. Its stores, 



62 THE FUTURE OF SOUTH AMERICA 

hotels, government buildings, and commercial houses 
are worthy of a northern city. Kingston is the center of 
a network of automobile roads, which gives it a still 
further advantage, such as its climate and agricultural 
possibilities do not deserve. The city is the commercial 
center of Jamaica, but this is all. 

The northeastern part of the island is far more at- 
tractive, while the most beautiful scenery is in the 
center, where the mountains abound. Land is fairly 
high in all accessible rainfall portions, averaging from 
one hundred and fifty to three hundred and fifty dollars 
an acre. Land distant from the railroad or coast can 
be purchased for from five to fifteen dollars an acre. 

Trinidad 

Trinidad is the most southerly of the West Indies, 
lying close to Venezuela. I arrived on a Saturday 
night at Port of Spain, and of all the quiet places for a 
city of sixty thousand, this was the limit ! On Sunday, 
however, the people seemed to wake up a little, and on 
Monday they really seemed seriously to consider work. 
The population of the island, about three hundred 
thousand, is a mixture of English, Spanish, and negroes, 
with the last-named in an overwhelming majority. 
The situation is further complicated by the introduction 
of coolies from India under an indenture system. Un- 
der this system, if an English planter of Trinidad de- 
sires a hundred coolies, he provides barracks for them 
and their families, supplies the passage money, and 
agrees with the English Government to pay and care 
for them for a period of ten years at about twenty-five 
cents a day, on the condition that he is to have their 



OTHER ISLANDS OF THE CARIBBEAN 63 

services exclusively during these ten years. At the 
end of the period, the coolies are free to return home 
or work for someone else. 

Often the coolie saves enough during twenty years 
to enable him to buy a small plantation of his own. 
Some of them have become prosperous and useful citi- 
zens, while thousands have made enough to return to 
India and live like princes. They live better than our 
negroes, and are far superior to them in morals, intel- 
lect, and industry. 

In this island of Trinidad is located the famous Pitch 
Lake, from which has come the asphalt that has paved 
so many of our streets. In addition to the pitch, oil is 
now found on the island. If this is good oil, it will be 
greatly appreciated, for I have found that in most of 
the islands of the West Indies, gasoline sells at out- 
rageous prices, while all the coal is imported from other 
countries. 

Land is high-priced in Trinidad. I have found no 
good plantations for sale at less than two hundred 
dollars an acre, and some owners want double this 
amount. On the other hand, the market is very nar- 
row and it is almost as hard to sell as it is to buy. There 
is just enough Spanish blood in these people to make 
them good traders. In fact, a combination of Indian, 
Spanish, and English is pretty hard to beat. What 
business United States citizens have done in this island 
has usually been transacted through commission mer- 
chants. Concerning this practice, one of the merchants 
in Port of Spain said : 

" Why don't your manufacturers send their own men 
instead of depending on agents? Commission houses 
do the best that they can, but they cannot afford to 



64 THE FUTURE OF SOUTH AMERICA 

spend time in pushing the sale of any line of goods. 
The average commission agent gets only from five to 
ten per cent, from your manufacturers on such export 
business. 

" Hence to make a go, they must get from two to 
five per cent, from the local buyers. This is very unsat- 
isfactory all around. If you will send down your own 
men, you can study the market. Why, the Germans 
are now even manufacturing for us antiques and relics ! 
They have their own men who learn what we want, 
who find out whom of us to trust, and they get the 
business." 

The Barbados 

The Barbados are commonly called Little England. 
The main island of the group is only twenty-one miles 
long and fourteen miles wide, with a total area of one 
hundred and sixty-six square miles. As the popula- 
tion is two hundred thousand, or about twelve hundred 
per mile, it is one of the most densely populated coun- 
tries in the world. The great majority of the people 
are of African descent, and less than ten per cent, are 
white. Considering the great majority of blacks and 
the intense loyalty of these people to England, it cer- 
tainly speaks well for English methods of colonization. 
This island is fairly healthful, with little swampy land, 
and is swept by strong sea breezes day and night. As 
a result, the principal industry is that of a health 
resort. The temperature of the winter season ranges 
from seventy to eighty degrees, and of the summer 
season from seventy-five to eighty-five degrees. 

All kinds of tropical fruits abound; but the principal 
crop is sugar, the soil being especially adapted for the 



OTHER ISLANDS OF THE CARIBBEAN 65 

sugar-cane. Low prices of sugar cause the planters to 
turn their attention to cotton, indigo, and fruits, which 
have been neglected heretofore. But in a general way, 
the people are absolutely dependent upon the sugar 
crop. 

In the Barbados it is a question of working or starv- 
ing, and the Barbadian negro is the most industrious 
and reliable of his race in the West Indies. In other 
islands, the blacks can exist independently of the 
plantations, as they have their own grounds for culti- 
vation, obtained either from the government or by 
squatter's license, from which they derive a mere liv- 
ing with a minimum of labor. In the Barbados, how- 
ever, there is no land available for the poor man to 
cultivate, all the holdings being in the planter's hands. 
There are no Crown lands, and as yet no abandoned 
estates which can be squatted upon. Hence the prob- 
lem that confronts the people when the sugar crop is 
a failure. 

All land suitable for crops is in a high state of 
cultivation and sells at from two to three hundred 
dollars an acre. How long the present state of affairs 
can continue is uncertain. Either these negroes will 
some day revolt and demand land, or else their economic 
habits will enable them to migrate to other islands and 
absorb them. There are no mining operations in the 
islands excepting for a small product of pitch, although 
there is said to be a large supply of petroleum beneath 
the surface. 

The one port and commercial city of account is 
Bridgetown, which has only a small harbor, where it is 
difficult to land. Notwithstanding the commercial dis- 
advantages in this way, there is still considerable com- 



66 THE FUTURE OF SOUTH AMERICA 

merce, and the exports are heavy. The imports are 
not worth considering, and although Great Britain con- 
sumes only about one sixth of the exports, she has 
the advantage of one half of the imports. However, 
Canada is developing an important business with the 
Barbados. 

I see no opportunities for the American in the Bar- 
bados. Not only are the people prejudiced in favor of 
the English, but there is no vacant land, the country 
is overflooded with blacks, and Bridgetown, although 
busy and active, is certainly a dirty, dusty, and unin- 
teresting city. In order that I may not seem prejudiced 
against the place, I give the following comment from a 
local guidebook: 

" About twenty-five thousand of the island's total 
population reside in Bridgetown, but the stranger land- 
ing here for the first time might be excused for supposing 
that fully one half the blacks of Barbados had con- 
gregated here, for they fill the streets and squares, as 
well as swarm upon the wharves and sea front generally. 
According to the universal testimony of travelers, one 
may see in Bridgetown relatively more white people 
than in most of the islands, although they compose less 
than one tenth of the population. One is jostled in the 
streets by horses, mules, and donkeys, but the big black 
men are the real beasts of burden and haul carts con- 
taining hogsheads of sugar as though they weighed but 
pounds instead of tons. ,, 

They are all busy, however, there being much less 
loafing than in any other place I have visited. As they 
must work, they perform their tasks with good will. 
Always hearty and good-natured, though independent 
and insolent toward the white people, the blacks of the 



OTHER ISLANDS OF THE CARIBBEAN 67 

Barbados are the best workers in the West Indies, and 
as such are in great demand in other islands. As al- 
ready indicated, however, at present they would rather 
labor in the Barbados on starvation wages, which are 
down to twenty-five cents a day for stalwart men and 
twelve cents for women, than migrate. How long this 
will last is a question. 

Martinique 

As I have said, the islands of the West Indies are 
simply the peaks of mountains, all of which are the re- 
sult of volcanic disturbances. Nearly every island 
gradually rises from the seacoast to an elevation in the 
center, which usually consists of a high mountain. In 
most cases, the volcanoes are nearly extinct, but some 
of them are yet grumbling. A few years ago one of 
them — Mount Pelee — suddenly broke forth and 
practically wiped out the city of St. Pierre with thirty 
thousand inhabitants. At the present time there is 
nothing in St. Pierre to interest any one. The city is as 
barren as an abandoned granite quarry, and reminds one 
of Pompeii. The place is under police control; and 
even to-day the ruins are being searched for remains of 
relatives and property. Two or three streets have been 
excavated, and some half-dozen temporary buildings 
erected; but otherwise little has been done. However, 
it is interesting to see what sunshine, rain, and balmy 
breezes will accomplish, for vegetation is already 
slowly creeping toward the city, and sugar-cane is being 
raised in the rich ashes which fell during the eruption. 
The city will probably never be rebuilt, although culti- 
vated fields will again abound. 



68 THE FUTURE OF SOUTH AMERICA 

The real city of Martinique is the capital, Fort-de- 
France, with a population of twenty-five thousand. 
This city is built on a deep bay which serves as a French 
naval station. As the Barbados are English in fact as 
well as in name, so is Martinique French from every 
point of view. The government is French, the names 
are French, the ways of the people are French. Most 
of the people living in the country around St. Pierre 
went to Fort-de-France after the earthquake, and the 
city has changed more or less since that time. The land- 
scape about Fort-de-France is pleasing, and as well-built 
roads extend from the capital in many directions, it 
may be made the place of departure for points in the 
interior and the Windward Coast country. The inte- 
rior has a number of small and interesting towns, and 
the total population of the island is about two hundred 
thousand on an area of only three hundred and eighty 
square miles. It is obvious, therefore, that Martinique 
offers few opportunities for the American, especially as 
most of the population is black. Briefly, the island has 
all the disadvantages of the Barbados and none of the 
advantages. Moreover, many believe that Mount 
Pelee is not yet exhausted and may again break forth. 

The Virgin Islands 

Of the Virgin Islands, St. Thomas is the only one at 
which large steamers make port. This island is thir- 
teen miles long and only three miles wide. It has a good 
harbor, deep and landlocked on three sides by hills. 
The chief port of this island is Charlotte Amalie, and 
it is considered to be one of the best in the West Indies. 
The town is built on the hills and is most picturesque. 



OTHER ISLANDS OF THE CARIBBEAN 69 

The houses are mainly of stone with red-tiled roofs, some 
having tropical gardens attached, and thus white- 
walled houses and palms and bananas are interspersed 
with lanes and stone steps which climb the hills and 
meander through the gullies. Most of the population 
of St. Thomas lives in Charlotte Amalie; this numbers 
about thirteen thousand, composed of both the black 
and the white races. Although the island is Danish, 
the prevailing speech is English. The town once served 
as an important commercial port, but shipping has 
fallen off greatly, owing to the few native industries 
now carried on and the fact that there is no agricul- 
ture to fall back upon. 

I do not see much of a future for St. Thomas to at- 
tract any one. The antiquity of the place, its old fort, 
its traditions connected with the pirates and buccaneers 
are pleasant to dream about, but its small size and its 
agricultural limitations discourage the American from 
going to this island with the hope of a bright business 
future. 

Another interesting island is St. Vincent, located only 
thirty-one miles from the Barbados. It is eighteen 
miles long and eleven wide, with a total area of only 
one hundred and forty square miles. This small area 
contains almost every kind of soil and physical condi- 
tion, such as hills and mountains, ravines and rivers, 
together with precipitous cliffs. That it is of volcanic 
formation does not need to be told, as the reader will 
recall the terrific explosion of its Soufriere in 1902, 
which killed more than two thousand people. The island 
has but one port at which steamers call, that of Kings- 
town, on its leeward coast, a clean, tropical-appearing, 
self-respecting city of about five thousand inhabitants. 



70 THE FUTURE OF SOUTH AMERICA 

The earthquake laid waste about a third of the island. 
To a certain extent the land has been reclaimed, but 
the place is still the center of a very volcanic district. 
The greatest sufferers from the eruptions have been the 
Carib Indians, descendants of the original inhabitants. 
They are a very poor people who are unable to support 
themselves or to be of much service. The entire popu- 
lation of the island, including these poor Indians, is 
only fifty thousand, and of this number less than one 
tenth are white. The white population has steadily 
dwindled for years, and most of those left are Por- 
tuguese. 

The resources of the island are more than sufficient 
to satisfy twice its present population. Many of the 
sugar plantations, and they once formed a fertile belt 
around the island, have been abandoned through apathy 
and indifference. Arrowroot is also cultivated, but the 
price is usually low, so that the natives can no more 
avoid discouragement than can the manufacturers and 
merchants of New York during a financial depression. 

The Bahamas 

Like others of the West Indies, the Bahamas were 
discovered by Columbus. They consist of a group of 
several hundred islands, stretching over six hundred 
miles. The principal one is known as New Providence, 
and upon it is located the capital, Nassau, mainly a 
tourist resort. These islands are all of coral formation, 
constructed on the top of land only slightly covered 
with water. Had Florida been a few feet lower in ele- 
vation, it would have been only a great cluster of islands 
like the Bahamas; while if the elevation of the Bahamas 



OTHER ISLANDS OF THE CARIBBEAN 71 

had been slightly greater, they would be a part of the 
United States — an extension of Florida. 

There is little to see at Nassau and little business. 
The principal exports are sponges and turtles, and if 
living there I would make a specialty of one or the other. 
Very little is known about either of these products, 
especially about sponges, and this industry, therefore, 
offers a future to some one who will study the ages, 
habits, methods of propagating, and other character- 
istics of the sponge. 

In addition to turtles and sponges, baskets are in 
evidence, while the ever-present banana is also to be 
found; in fact, some fine fruits are now raised in the 
Bahamas, especially the pineapple, grapefruit, and co- 
coanut. The climate is especially attractive. Although 
warm in the sun, there is a crispness in the air which 
the other islands seem to lack. Without the life-giving 
trade winds, Jamaica and the Barbados would be intol- 
erable for North Americans. The Bahamas, however, 
apparently have all the advantages of the other more 
southerly islands of the tropics without many of their 
disadvantages. One could live in the Bahamas with- 
out deteriorating physically, mentally, and morally. 

Nassau is owned by the English, and English is the 
common language. Another advantage is that enough 
white people live there to provide society for one an- 
other; but with such a density of population as is com- 
mon to all the islands mentioned in this chapter, I fail 
to see how their future will differ much from present 
conditions. 



CHAPTER VI 

Panama 

Of course to most of us, "Panama" signifies the 
"Canal," but we should not forget that there is also a 
considerable republic whose sovereignty as a separate 
and independent nation we guarantee, and which offers 
trade and development possibilities. To one who has 
read of the great engineering problems successfully 
solved in the construction of the canal, its present ap- 
pearance will prove a disappointment. As a matter of 
fact, the canal proper now looks much less interesting 
than do many rivers in your own State. It appears to 
be simply a dirty stream of almost stagnant water, only 
some two to six hundred feet wide, lying in the midst 
of a swampy and uninteresting country. The only in- 
teresting portion is the great locks and the Gatun dam. 
The locks, however, are worth seeing. They are massive 
granite structures one hundred feet high, one thousand 
feet long, and one hundred feet wide. There is a set of 
locks about six miles from each end of the canal. In 
each set there are three locks for ships going west and 
three for ships going east. This makes three twin locks 
in each set, or twelve locks in the entire canal. These 
locks are separated by great iron gates, weighing thou- 
sands of tons each, all electrically operated. Gatun 
Lake makes up about half of the canal. It is twenty 
miles long and averages about eight miles wide. The 



PANAMA 



73 



total length of the canal is about forty miles. The crea- 
tion of this connecting link between the two great 
oceans is one reason for the increased commercial im- 
portance of South America to the United States, and the 
following table gives a clear idea of the changed dis- 
tances which the canal has created: 



Present routes, 
miles 



New routes 
via Panama 
Canal, miles 



Saving of 
mileage 



London to — 

Honolulu . . 

San Francisco 

Vancouver . . 

Valparaiso . . . 
New York to — 

Honolulu . . . 

San Francisco 

Sydney . . . . 

Vancouver . . . 

Valparaiso . . . 
New Orleans to — 

Honolulu . . . 

San Francisco . 

Vancouver . . . 

Valparaiso . . . 



13,987 

13,814 

14,614 

9,044 

13,531 
13,358 
13,051 
14,158 

8,588 

13,697 

13,775 

14,575 

9,005 



9,499 
8,059 
8,859 
7,397 

6,723 
5,289 
9,704 
6,089 
4,627 

6,131 
5,197 
5,497 
4,035 



4,488 
5,755 
5,755 
1,647 

6,808 
8,069 
3,347 
8,069 
3,961 

7,566 

8,578 
9,078 
4,970 



While Cuba is the largest of the Central American 
and West Indian countries, Panama is one of the 
smallest, for although about four hundred miles long, 
it averages only seventy miles in width. In fact it is 
about the size of the State of Indiana. It has, however, 
a very extended coast line which to a considerable de- 
gree compensates for its small size. Furthermore, while 
Cuba is the nearest to us, Panama is the farthest away 
of any of these countries. It is the most southerly of the 



74 THE FUTURE OF SOUTH AMERICA 

Central Americas. The country of Panama is crooked, 
like the letter "S." The canal is located in about the 
central portion in a strip of land ten miles wide, known 
as the Canal Zone, which is the absolute property of the 
United States. For this land Panama was paid ten 
million dollars in gold in addition to the forty million 
dollars which we paid the French Canal Company. We 
also pay Panama two hundred and fifty thousand dollars 
a year rental. But here comes one difficulty. Practi- 
cally all the business of the Panama nation is carried on 
and certainly nearly all the intelligent people live in 
the cities of Colon, on the Atlantic, and Panama City, 
on the Pacific. Yet these two cities are almost within 
the Canal Zone, which is under United States super- 
vision, and which has certain control of sanitary, 
police, and other matters. 

But this is not the worst of the situation. Ameri- 
cans and others going to this new country have started 
to build two new cities adjoining the old, and it is diffi- 
cult to tell where the old end and where the new begin. 
The new American city adjoining Colon is called Cris- 
tobal. The new American city adjoining Panama is 
called Balboa. In these two new cities are the great 
docks, warehouses, and public buildings. The results 
of this complicated situation may some time become 
embarrassing. Not only does much competition exist 
along many different lines, but the new cities are grow- 
ing much more rapidly than are the old ones. 

The general impression is that the weather of the Isth- 
mus is terribly unhealthful. We think of the tremen- 
dous rainfall, amounting to about one hundred and 
thirty inches a year, which is three times the rainfall of 
New England and our central west. Knowing that the 



PANAMA 75 

farther south one goes the hotter it is, we naturally 
think it must be frightfully hot in Panama. It is true 
that the rainfall in Colon is very heavy, but the heat 
is not excessive. It is not much hotter there in summer 
than it is in winter. When the sun's rays (in June) are 
at their most northern vertical point, they are falling 
at practically the same angle on Panama and Phila- 
delphia; while during our spring, when the sun's rays 
are absolutely vertical over Panama, the angle is not 
enough more direct to make a great difference in the 
climate. 

The fact is that it is warm in Panama all the year 
long. The hottest weather there is during our spring- 
time, but during June, July, and August it is not any 
hotter in Panama than in the United States. The great 
danger in tropical countries comes from excessive rains 
or swampy low lands. 

Only those who visited Colon and Panama City 
a dozen or more years ago can realize the tremendous 
improvement in the health conditions and comfort of 
these cities. When I was first down there, I was walk- 
ing along a fine macadam street in Colon with a gentle- 
man who told me that eight years before the mud and 
water in this street had been a foot deep. 

Said he: "The sidewalks consisted simply of rail- 
road ties laid crosswise. We would step from one of 
these to another to get out of the water and filth. One 
evening I missed my step, and instead of putting my 
left foot on the next railroad tie, I put it directly on 
the back of a crocodile ! You have no idea of the condi- 
tions then existing. The death rate, which is now only 
about sixteen per thousand, was then about fifty per 
thousand." 



76 THE FUTURE OF SOUTH AMERICA 

Most people make the mistake of thinking that South 
America is directly south of North America, and that 
Panama is south of our central west. The truth is that 
South America is east of North America and Panama 
City is directly south of Buffalo. Valparaiso, Chile, on 
the west coast of South America, is directly south of 
Boston, both being approximately on the seventieth 
meridian. The canal does not run east and west; 
when a steamer enters it at Colon, it goes through 
southeast to the Pacific Ocean. 

Owing to the strategic location of Panama and its 
value to the United States Government, it should con- 
tinually grow in importance. Its location is especially 
well adapted for trading purposes, and opportunities 
are to-day being rapidly seized by the Chinese, who 
make fine merchants. Even in Jamaica, which has 
been owned by the English for two hundred years, over 
eighty per cent, oi* the stores are operated by Chinese. 

The location of Panama tends to make it a very cos- 
mopolitan place. In a short walk one may see at least 
twelve nationalities — Americans, English, French, 
Chinese with their pigtails, Hindus wearing combs, 
and real Indians from the interior; then there are Span- 
iards, Germans, and Dutch, together with various 
grades and varieties of negroes. There are three great 
cemeteries in Panama — the Christian, the Hebrew, 
and the Chinese — in which graves are rented instead 
of sold. The form of government is almost identical 
with that of the United States. The population is esti- 
mated at about three hundred and fifty thousand, of 
which fifty thousand are Indians and one hundred 
thousand negroes. 

The city of Panama-Balboa was founded in 1673. In 



PANAMA 77 

1773 it had a population of about eight thousand, and 
to-day has about forty thousand. The city of Colon- 
Cristobal was founded in 1850, when the Panama Rail- 
road was started. In 1904, when the United States 
engineers went there, the population was ten thousand, 
about nine thousand of them living in houses perched 
on stilts. The population to-day is about twenty 
thousand. 

The principal industry of the republic is trading in 
the cities, and cattle and cocoanut raising in the country 
districts. Panama has land of all altitudes. There is 
a mountain range of from four to seven thousand feet 
in height in Darien, and in the province of Chirique are 
mountains eleven thousand feet high. Although the 
interior has been little explored, it is believed that there 
are good mineral deposits. There are also timber tracts 
and some water-power possibilities. 

What North Americans are doing in the thirty thou- 
sand square miles of the Republic of Panama is a story 
about which comparatively little has been said or even 
known to the world at large. The North Americans in 
the cities do not come into close contact with the people 
of the republic. They live apart; neither speaks the 
other's language to any great extent, nor tries to do so. 
This is doubtless one reason why our people are no more 
popular with Panamanians to-day. 

In looking at the business and life of the Republic of 
Panama, it is, unfortunately, necessary to exclude the 
American foreigners from consideration. Except for 
the one connection existing through the desire of the 
native people and merchants to share in the benefits of 
the buying power of the canal wages, there is little other 
interest in them. Even this point of contact is more 



78 THE FUTURE OF SOUTH AMERICA 

apparent than real, for the United States commissaries 
supply most of the needs of their employees. The native 
and local merchants, therefore, must fall back on the 
tourist trade, for neither American tourists nor even 
resident Americans, not of the canal staff, have any 
privileges of Uncle Sam's commissaries. Leaving out 
of consideration the Americans in the Zone because of 
the canal, and turning to the republic itself, and what 
part Americans play in its business activities, let us 
look first at the cities of Panama and Colon. 

In these two cities, one finds little that is familiar. 
Each has a branch of the International Banking Cor- 
poration of New York, managed by United States citi- 
zens. Panama has a large firm of North American 
contractors, a firm of dentists, of lawyers, and a handful 
of business enterprises, for the most part small. A doctor 
from our States is the head of the local hospital (San 
Tomas Hospital). One must hunt for most of these, 
however, in a city that is Latin-American in speech, 
customs, and traditions. There is a tramline backed by 
North American capital. Colon has an " American " 
trading firm, dealing largely in lumber and cocoanuts. 

Judging from these cities, one would say, if there is 
any activity by our people in Panama, it must be out 
in the country. But aside from the extensive banana 
plantations of the United Fruit Company, at Bocas del 
Toro, on the Atlantic side, with a good-sized American 
staff, thorough search reveals little American activity. 
As to just what is being done by other interests, I quote 
from a letter from one of the best posted men in the 
United States on Panamanian industries : 

"The Pacific coast of Panama, by reason of its more 
comfortable climate, is likely to prove the most attrac- 




Copyright by Underwood & Underwood 

INDIAN DUGOUTS ON THE CHAGRES RIVER BRINGING 
BANANAS TO GATUN, PANAMA 



PANAMA 79 

tive to Americans, as well as others, both foreign and 
native, and it is on this coast that the greatest general 
development is likely to be found. 

" An American runs a line of small boats from Panama 
City to Pacific ports of Panama, carrying cargo and 
passengers, and doing a trading business. In Chiriqui 
Province, near the Costa Rican border, the Panama 
Government is building a fifty-two-mile electric rail- 
road, to connect David and several small interior 
towns with the seaport town of Pedregal. A local 
American contracting firm is doing the work. There 
are already a few American ranchers in this district, 
which on the low lands is noted for cattle raising, 
and higher up, back from the coast, for its fine 
coffee. 

"On the Pacific coast, between Panama City and the 
Costa Rican border, at various points, are found a 
number of Americans engaged in cocoanut raising on a 
considerable scale. An American company has two 
thousand acres in this fruit. Another has five hundred 
acres, and there are several others smaller. Americans 
are also planting cocoanuts on the Atlantic coast, one 
being a Philadelphia firm, with property near Bocas 
del Toro. A cocoanut company, owned by local capital, 
largely American, is being operated near the San Bias 
coast, which is between Colon and the Colombian 
coast. 

"The country of the republic is primarily agricul- 
tural, and cattle raising in the Chiriqui district and 
cocoanuts on both coasts are the most logical forms of 
development. Americans thus far are monopolizing the 
latter, and likely to continue to do so, for Panama, of all 
tropical countries in the world, grows the best and high- 



80 THE FUTURE OF SOUTH AMERICA 

est-priced cocoanut. This, coupled with the advantage 
of traffic conditions, by reason of the canal, makes it 
strategically the foremost of all countries for this im- 
portant and rapidly increasing industry. Better ship- 
ping facilities on the Pacific coast are likely to see 
increasing industry on the part of Americans as well 
as others during the next few years." 

I know but little about cocoanuts, but it has seemed 
to me that this is a coming business. During the past 
twenty years I have watched the development of 
orange groves, rubber plantations, and the like. It is 
known that most of those who get into such things in the 
early stages and have had sense enough to sell out as 
soon as the industry becomes popular, have made con- 
siderable money. It has looked as if the cocoanut 
industry would have the same general history, and I 
believe that certain good opportunities exist to-day in 
Panama for its development. 

I further believe that those who now buy the actual 
land and personally attend to the planting and develop- 
ment of the trees should make considerable money, 
provided they sell out when the industry becomes 
popular. This last suggestion, however, is very im- 
portant for readers to remember. The day will come 
when cocoanut planting is overdone, the same as 
have been rubber planting, the development of orange 
groves and pineapples. At that time the temptation 
to buy more cocoanut land, and especially to hold 
what land one has, will be very strong. The wise in- 
vestor, however, will not only insist on taking his 
profit at that time, but, to be sure of his profit, should 
take it before that time comes. Moreover, one should 
be very sure that the land in which he invests is prop- 



PANAMA 81 

erly located and under an honest and intelligent 
management. 

Most of our people think of cocoanut palms merely 
as a highly ornamental feature of the tropical land- 
scape, and have a vague idea that their fruits are 
chiefly useful in furnishing food to the people who 
dwell beneath them. We do not realize that cocoanut 
oil, extracted from the meat of the nuts, forms the 
basis of nearly all high-grade soaps; but this is the 
case, and the demand for it for soap-making purposes 
is rapidly increasing. 

There is now a still larger and more urgent demand, 
due to the discovery that from it can be made excel- 
lent substitutes for butter and lard. So great is the 
world's need of food fats that the available supply 
derived from animals is no longer adequate, and pres- 
ent indications are that the prices of such fats will 
steadily rise, in proportion to the increased demand 
for meats. Cocoanut oil is especially suited to fill this 
need, because of its comparative cheapness and its 
absolute freedom from the disease germs with which 
animal fats are liable to be infected. Food products 
made from it keep for a long time without deterioration. 
Many people believe that cocoanut butter and lard 
are destined to take the place of animal butter and 
lard. Recently cocoanut oil has been used as the basis 
for the manufacture of a "condensed milk" said to be 
chemically indistinguishable from condensed cow's 
milk, and it is said that an excellent cocoanut oil 
" cheese" will shortly be placed on the market. Cocoa- 
nut butter and lard are easily digested. The butter 
is not open to the aesthetic objection entertained by 
many persons toward so-called "oleomargarine" made 



82 THE FUTURE OF SOUTH AMERICA 

from animal fats, while the lard is highly appreciated 
by Mohammedans, whose religion forbids their using 
hog products. 

Copra consists of the dried meat of cocoanuts, and 
from it, by the use of heat and pressure, cocoanut 
oil is obtained. The world's consumption of copra 
has increased from 372,500 tons in 1909 to about 
600,000 tons to-day, and the imports of cocoanut oil 
into the United States have grown from 21,650 tons 
in 1911 to about 40,000 tons. For many years the 
demand for cocoanut oil has increased more rapidly 
than has the supply, with the result that prices have 
trended quite steadily upward. The new and impor- 
tant uses recently found for this valuable product may 
favor a continuance of this movement. Copra is a 
product which can be shipped to Europe or the United 
States. Its price is governed in the long run by the 
conditions which determine the price of cocoanut oil. 

While cocoanuts will grow at altitudes from sea 
level to three thousand feet above it, some regions and 
soils are much better adapted to their production than 
are others. Drought seriously affects the setting of 
the young nuts, and if long continued, and severe, may 
even kill many of the leaves. Although an abundant 
and evenly-distributed rainfall is highly important, 
water must not stand around trees long enough to stag- 
nate, or it will harm them. Trees freely exposed to 
strong breezes and moderate winds often do better than 
those from which air currents are cut off, but violent 
windstorms throw down the young nuts, injure the 
leaves, and if of very great intensity, may even uproot 
the trees themselves. While cocoanut trees will live and 
produce fairly well both in pure beach sand and in stiff, 



PANAMA 83 

heavy clay, if other conditions are favorable they do 
best in a light rich soil near the ocean. 

The principal drawback to cocoanut raising seems 
to be the "rot" which attacks different sections at dif- 
ferent times, and which within a year will kill an entire 
grove of trees. The uncertainty about this "rot" 
makes the raising of cocoanuts a speculation rather 
than an investment. If wonderfully rich soil bears a 
rank growth of vegetation, heavy clearing operations 
may continually be necessary; but if the "rot" is 
avoided, the increased returns during a single year 
after a plantation comes into bearing will far more 
than repay the additional first cost involved. 

Concerning further details, I quote from the Honor- 
able Dean C. Worcester, former Secretary of the 
Interior of the Philippine Islands, who is one of the 
best-informed men in the world on cocoanuts. He says : 

"Cocoanut trees suffer comparatively little from 
insect attacks unless growing near sugar plantations 
where the rhinoceros beetle breeds in the waste from the 
cane mills. Money invested in a properly situated and 
well-established cocoanut plantation is like money in 
the bank, except that the rate of interest obtained is 
far larger than any bank will pay. The trees attain to 
extraordinary age without losing their productivity, 
and one who plants a cocoanut grove is providing for 
one's children's children. 

"There is no special harvest time, bringing with it a 
rush of work, and calling for the temporary employ- 
ment of a large additional number of laborers. Under 
favorable climatic conditions flowers and mature nuts 
are found on the same tree. The ripe nuts should be 
harvested every three months, and with a force of la- 



84 THE FUTURE OF SOUTH AMERICA 

borers adequate to cover the entire plantation during 
this period, harvesting becomes a continuous opera- 
tion, giving the laborers steady employment and dis- 
tributing the receipts uniformly throughout the year. 

"The returns per acre from a good cocoanut planta- 
tion are very large. Where the soil is rich, not more than 
fifty trees should be planted to the acre. Adult culti- 
vated trees will average nearly a hundred nuts to the 
tree, or about 5,000 to the acre, per year. Good nuts 
give five piculs of copra to the thousand, and an acre 
will yield gross receipts of $125, with the selling price 
of high-grade copra at $5 per picul. I allow a total gross 
cost per acre per year of $35.15 on 2,400 acres in full 
production. This includes deterioration on plant and 
equipment, and is a liberal estimate. " 

As the future of Panama depends so greatly upon 
its relations to the United States, I arranged for a con- 
ference with the President of the Republic. 

"It is not you 'Americans' that we do not like," 
said he, "but rather your ways of doing things. There 
is a feeling that Americans come down here for what 
they can get, instead of for what they can do. Too 
frequently your countrymen want concessions to sell 
rather than to work. You Yankees are naturally trad- 
ers, and not producers. The people of South America 
want Americans to come here to raise crops and not to 
raise prices." 

This is the answer which he gave in reply to my ques- 
tion: "Why is it that the people of Central and South 
America do not like us North Americans?" I ex- 
plained to him that many of my countrymen returning 
from Latin America seem very much disappointed, 
claiming that citizens of the United States are not well 



PANAMA 85 

treated, that the different governments are rotten with 
graft, that justice must be purchased, and that the 
police system in every country is a farce. 

I had already learned why North Americans are less 
popular than Germans. The Germans send young 
men over to South America before their habits are 
formed. These young men not only learn the language 
but adopt the customs of the Latin-Americans. They 
grow up with the youth of Latin America and become 
their friends. Manufacturers in the United States, 
however, do the opposite thing. The habits of our men 
are already formed when they get to these other 
lands, and many of them attempt to do business with- 
out even knowing the language, let alone conforming 
to the customs of the people. 

Concerning this question of friendship, the President 
said: 

"The nature of Latin- Americans is entirely different 
from that of your people. We think a great deal of 
friendship. Perhaps we expect too much from you. 
We know you are great and powerful; but you are not 
willing to give us the treatment which a man will give 
his sister. A man will not compete with his sister. 
You would not think of treating your sister or your 
daughter as you are treating us. A good brother loves 
his sister, and we want you to love us. We admire 
you, and it is only a step from admiration to love. 
We are now prepared to take this next step; but are 
you? 

"Every small nation pines for friendship as does an 
individual. Owing to our language and history, it 
would seem natural that we look to Spain ; but Spain is 
now but a memory. For business reasons, it might 



86 THE FUTURE OF SOUTH AMERICA 

seem wise for us to appeal to England, France, or Ger- 
many; but at present this is impossible. Therefore we 
turn to you. Remember, however, that it is not so 
much your money and trade that we want as it is your 
love and confidence. This may be incomprehensible 
to your hard-headed commercial men; but it is abso- 
lutely true. Moreover, it is a truth which your people 
must comprehend before we shall ever really like you 
— I mean, before we shall like your ways." 

Thereupon the President stood up and put his arms 
affectionately around our able United States minister, 
who was embarrassed for a moment, but, like the true 
diplomat he was, made no resistance. 

Referring to this incident, a prominent New York 
lawyer who accompanied me that day told me, after we 
left the palace, of an experience he had in the same line. 
Some few years ago, he won a case for Venezuela, and 
the first time, after the verdict, that the minister from 
that country met my New York friend happened to be 
about one o'clock, on Wall Street, just as thousands of 
people were going to their luncheon. But the number 
of spectators made no difference to the distinguished 
Venezuelan. He threw his arms about the lawyer and 
covered his face with kisses. 

Of course, this custom seems absurd to a practical, 
cold-blooded citizen of North America; but I am not 
telling of it to amuse any one. I mention it only to help 
readers of this book to grasp a fundamental character- 
istic of the Latin- Americans. Furthermore, let me add 
that until we reach a point where such signs of affection 
arouse within us admiration instead of amusement, we 
shall not have much influence in South or Central 
America. 



PANAMA 87 

When one considers our investment of four hundred 
million dollars, which has caused both the birth and the 
boom of the Republic of Panama, it is at first inconceiv- 
able that the people there are not more grateful. In 
1904, when we went there, the isthmus was one of the 
most unhealthy spots on the globe, and both Panama 
on the Pacific and Colon on the Atlantic were miser- 
able little towns. To-day, the death rate of Panama is 
less than that of Pennsylvania, while the two cities 
named have doubled in size, usefulness, and attractive- 
ness. 

Moreover, not only did the Republic of Panama re- 
ceive from us ten million dollars in gold (over half of 
which is still invested in New York real estate), but we 
give them an annuity of two hundred and fifty thousand 
dollars a year. I asked President Porras just what 
things now stand between the two nations, and he 
cited four. Said he: 

" First. Some of you Americans have been very 
sharp with us. I often wonder whether we see the best 
of your business people down here. We see your great 
military men; but do we meet your great financial men? 
We want to love and trust you. We do not want to feel 
that we must watch you at every turn. 

" Secondly. We feel that your commission depart- 
ment is unjustly competing with us. If our merchants 
ask extraordinary prices, or do not sell good goods, 
your government may be justified in competing with 
us; but not otherwise. Every man doing business is 
entitled to a fair profit. What chance have our mer- 
chants, or even our entire little republic, in competi- 
tion with a great nation like yours? 

" Thirdly. We feel that the Panama Railroad, which 



88 THE FUTURE OF SOUTH AMERICA 

is owned and run by your government, is being operated 
extravagantly, and that our people are being forced to 
pay the bills. The fares are five cents a mile. The 
freight charges are high. The methods are sometimes 
very arbitrary. You seem to show us Panamanians 
very little consideration. Again I ask you to remind 
your readers that we are a little nation, and that you 
are great and strong. Should not you therefore be all 
the more careful to be just and fair? 

" Fourthly. We ask you to keep your towns of Bal- 
boa and Cristobal for the exclusive use of the canal 
employees. Of course, when we made our treaty with 
you, we never dreamed that you would start these two 
American cities. We supposed the Panama Republic 
would have the benefit of all the growth coming from 
the canal. Here is where you fooled us. Very well; 
this is done. But do not carry it too far. Do not rob 
us of taxes by permitting companies to locate their 
offices in the Canal Zone. Keep this strip of territory 
exclusively for active employees of your government. 

" These are four specific grievances which are sure 
to cause trouble if not remedied. But, most of all, such 
things cause us to fear you and your government. We 
wonder if every year you will do something still more 
arbitrary. We are worried perhaps even more by the 
fear of what you may do than by what you have done." 

There are two reasons for studying conditions in 
Panama, namely: 

1. Panama is the one nation on the American conti- 
nent with which the United States has direct influence, 
backed by an iron-clad treaty which was prepared by 
the Honorable Elihu Root. In this treaty, we not only 
secure absolute control of the Canal Zone, a strip forty 



PANAMA 89 

miles long and ten miles wide, but we also guarantee the 
sovereignty of the Republic of Panama. 

2. Panama has the best strategic position of all the 
Central and South American republics, and yet is the 
least developed. Although it has only the area of In- 
diana, it has an average length of four hundred and 
fifty miles — equal to the distance between Boston and 
Baltimore — a coast line of nearly a thousand miles — 
or about one third the total Atlantic and Pacific sea- 
board of the United States. 

Concerning these two features, the President said to 
me: 

"The Republic of Panama offers to the citizens of 
your country the greatest opportunity imaginable. 
Not only are your relations with our government such 
as should insure protection to your investments, and 
even prevent revolutions, but the opportunities here 
are marvelous. Here we are located at the meeting of 
the world's two greatest oceans and two great conti- 
nents. Here nature designed should be located the 
world's greatest city. Here should be the market place 
for the peoples of the east and the west, the north and 
the south. 

"Nature has been bountiful to us, giving us a wonder- 
ful climate, an abundant rainfall, and everything that 
goes to make an industrial nation. We have coal, iron, 
and other minerals, great timber forests, and immense, 
undeveloped water power. All we now need is affec- 
tion and capital, to make the rose blossom where now 
the cactus flourishes. 

"But what do you do?" continued the President. 
" Do you grasp this great opportunity ? No; instead of 
sending to us farmers, you send only soldiers; instead 



90 THE FUTURE OF SOUTH AMERICA 

of shipping seeds for our fields, you forward only shells 
for your guns. Your country is not in any degree de- 
veloping the immense industrial and commercial pos- 
sibilities of our republic. Apparently you are interested 
in developing here only a strong naval and military 
station such as England has at Gibraltar. You seem 
to look at everything from a military point of view. 
Whether our congress considers railroads, or other de- 
velopment plans, your only question is, how will it 
affect your defenses of the canal? 

" And yet, what do these defenses amount to? Noth- 
ing, absolutely nothing. Your fortifications may be of 
use in preventing the entrances to the canal from being 
the first places captured. Even this, however, is de- 
batable. To-day your ships have guns that will fire 
farther than the guns -in these fortifications. Is there 
any reason why Japan or any other nation should not 
have just as powerful guns in its navy as have you? 
If so, is there any reason why a hostile force could not 
silence the guns which you are placing at the entrances 
to the canal? With your expensive coast line and nu- 
merous seaports to protect, your navy could not afford 
to maintain down here a sufficient force to guard these 
entrances. 

"But assuming that an enemy could not take these 
fortifications, what would prevent him from landing 
troops on the shore and marching inland? Moreover, 
your task is not simply to prevent the canal from being 
captured, but rather from being put out of commission. 
To think that you could keep an enemy from sending 
two or three shells into these locks is utterly foolish. 
I repeat that your defenses are as nothing, absolutely 
nothing.' ' 



PANAMA 91 

And then the President turned to me and said 
earnestly : 

"How much better for your country if you would 
spend on industrial development in Panama at least a 
part of these millions which you are spending on mili- 
tary work ! Here we have great resources. If you would 
help us develop our soil, harness our water powers, open 
our mines and market our lumber, great profit would 
accrue to you and to us also. Here is your great op- 
portunity, and I ask you to repeat this message of mine 
to your friends in the United States. Tell them that al- 
though the millions which they are spending upon for- 
tifications must be as nothing, either in case of war or 
of peace, every penny invested in the development of 
the country will return to them many fold." 

Panama was known to the Europeans long before 
the Pilgrims set foot on Plymouth Rock, and even in 
those early days the importance of a direct westward 
route across or through the isthmus was foreseen. The 
main reason that enabled Panama to break the bonds 
that united her to Colombia was the latter's attitude 
regarding the completion of an inter-oceanic canal. 
The transaction of business was much retarded, and 
the revolutions of Colombia kept the isthmus in a 
state of effervescence. 

It became clear that the French Company, in spite of 
constant extensions of time, would never complete the 
work, and in 1903 at a huge mass meeting of the people 
in the Central Plaza the City Council declared the inde- 
pendence of the isthmus, amidst the wild enthusiasm 
of the masses, but without any bloodshed. The United 
States was the first country to recognize this independ- 
ence, for about two weeks after the secession from 



92 THE FUTURE OF SOUTH AMERICA 

Colombia a treaty was signed between our own nation 
and this new republic. From this treaty I paraphrase 
the following: 

1. The United States guarantee the freedom of Panama as 
a republic and constitute themselves as defenders of its terri- 
tory in case of conflict with any other nation, having the right 
to interfere in internal affairs only when a civil war or dis- 
turbances of the peace may arise that would endanger the 
work of the Canal or any other American interest. 

2. The Canal is to become the perpetual property of the 
United States. 

3. A strip of land ten miles wide, running on both sides 
of the Canal from the Atlantic to the Pacific, is leased for an 
indefinite time to the United States Government, for which the 
United States are to pay the Republic of Panama $250,000 
a year. The cities of Panama and Colon are excluded from 
this zone, remaining as part of Panama territory. 

4. The United States Government is to undertake and 
complete within a certain time the work of sanitation in the 
Canal Zone, including also the Panamanian cities of Panama 
and Colon. 

Since her separation from Colombia, Panama has 
improved rapidly. Her government offices are now filled 
largely by her own citizens; schools have been opened 
and are constantly becoming better; roads with bridges 
over the many streams have been built, and it is ex- 
pected that railroads will soon replace the old method 
of delivering goods on horseback. The building of rail- 
roads will naturally, as everywhere, be a most important 
factor in the development of Panama's resources. 

Unquestionably, Panama is a land of the future, if 
she will adopt a free-trade policy. She has the best 
location in the world for developing a great free market. 
Her opportunity is commercial rather than industrial. 
To develop such a market, however, England's policy 



PANAMA 93 

must be followed. Panama is the key to the Pacific, 
and therefore a most cosmopolitan country, as all the 
races of the world may be found within her territory. 

Her resources are many, stock raising and farming 
being the most important. On account of the rich soil, 
agriculture now offers most favorable advantages to 
capital. Bananas and sugar-cane are wild products. 
It is very common to see a bunch of bananas larger than 
a six-year-old child being sold for fifteen cents. Her 
forests are rich in many valuable woods. 

Perhaps it is not generally known that the idea of the 
canal dates back to the time of Charles V of Spain 
(1528-1534), who gave orders regarding the project. 
Certainly if there is anything to be proud of in the way 
of human enterprises, I believe this achievement is 
that thing. Most of the success of the work is, without 
doubt, due to two men: Colonel Goethals, Chief Engi- 
neer of the Panama Canal Commission, and Colonel 
W. C. Gorgas of the Medical Corps, United States 
Army, Chief Sanitary Officer in the Canal Zone. In 
my own opinion, however, the building of the canal is 
due more to the Medical Corps of the United States 
Army than to the various engineers and statesmen. 

Although to the European it may still be for many 
reasons more advantageous to travel by the Straits of 
Magellan, yet to American trade the canal is of the 
greatest importance. We can compete with Europe, 
bringing her eastern products more quickly to Guaya- 
quil, Callao, and Valparaiso, since New York is seventy- 
five hundred, forty-four hundred, and thirty-eight 
hundred miles nearer to these ports, respectively, than 
is Liverpool. Against such advantages, there are, 
however, other important factors, viz., (1) The ex- 



94 THE FUTURE OF SOUTH AMERICA 

ports from these countries to Europe, whose value 
has been five times as much as to the United States, 
give the steamers enough for a return cruise to 
Europe; (2) the European capital, which has a strong 
footing in South America, as evidenced by many 
foreign banks, provides the necessary credit; and (3) 
the United States exacts a tariff from steamers passing 
through the canal. 

The future is still reserving great changes in the 
world's commerce. The United States has solved a 
most important problem by digging the canal. Com- 
merce will expand to the remotest regions, time and 
freight charges being greatly reduced. Cargoes from 
Europe will reach our Pacific coast much more quickly, 
and shipments to Asia can go by a " direct westward 
way," as Columbus thought over four centuries ago. 

Meeting a friend on the isthmus, I asked why it was 
that I saw so few Germans in Panama. This reply 
came at once: 

"The land laws are so bad, and the police and judi- 
ciary so rotten that the Germans will not come here. 
Take it from me, where you find the most Germans in 
South America, there you will find the most opportuni- 
ties; where there are no Germans, there are no oppor- 
tunities. The people of Panama, Colombia, and 
Venezuela are very difficult. The only one of these 
countries down here that has a satisfactory govern- 
ment is Costa Rica, and the better condition there is 
due to the fact that the Costa Rican government is 
controlled by a large United States corporation. Jus- 
tice must be bought in Panama; and in every other 
Latin-American country, for that matter. The police 
are unreliable. The courts favor their own people and 



PANAMA 95 

are universally against foreigners. Bribery exists 
everywhere, and every man's hand is open. The people 
who are friendly with the government officials do well. 
Those who do not stand in with the government have 
big taxes." 

Against the word of this man, I repeat what the 
President of the republic said to me as I was leaving 
the palace. It was this: 

"Tell the people of North America that such stories 
regarding South America are false. We are of course 
young, and our people have not the education that your 
people have. Hence we make many more mistakes; 
but our hearts are in the right place. We want to do 
right. Just treat us as you would your sister, and cease 
exploiting us, and everything will go on well. Look at 
the opportunities of Panama, instead of at the sins. 
Think what possibilities for development you have here, 
instead of seeking chances for distinction. 

"We have millions of acres of the finest sugar-cane 
land in the world, and yet we are now importing sugar. 
Therefore there are great opportunities in this line. 
Our land is unexcelled for tobacco. Land which is sell- 
ing for two to three hundred dollars an acre in Cuba 
can be duplicated here for a few dollars. 

"A great opportunity awaits those who will import 
good breeding stock, and raise cattle, hogs, and other 
livestock. We have fine grazing lands, suitable for 
raising millions of head of cattle, and yet we import 
our butter and cheese. Our people have the erroneous 
idea that cows cannot bear both calves and milk for the 
market. Your people know better. A great opportu- 
nity exists in the erection of dairies and the like. We 
are building a railroad, carriage roads, and a fine hos- 



96 THE FUTURE OF SOUTH AMERICA 

pital. This railroad is to open up the Chiriqui district, 
where some of your countrymen are doing so finely to- 
day. Along the line of this railroad are opportunities 
— and we shall build more railroads as soon as your 
government will let us. Finally, let me say that we 
have now a fine district in which your citizens can live 
when they come here. A beautiful suburb is being 
developed here at Panama City across the bay." 

I believe that the future of Panama depends upon 
what tariff system is adopted. If she follows the trail 
of other Latin-American countries and erects tariffs 
either to secure revenues or " protect" her people, she 
will continue to be a struggling little republic for years 
to come. If, however, Panama will adopt the " open- 
door" policy, she can become the market place of the 
world. No place is better located to take from England 
her clearing-house trade. Everything favors Panama 
City becoming another London or Liverpool. If, 
therefore, the people will strive for such a result, the 
future of Panama is very bright. 

However, whether you are considering Panama or 
Pennsylvania, don't throw up your job and move there, 
or invest money, until you have visited the place and 
investigated for yourself. Don't depend upon the eyes 
or ears of others when seeking opportunities either for 
work or investment. 



CHAPTER VII 
Venezuela 

Venezuela is in a strategic position, as it is the north- 
ernmost country of South America. It is bounded on 
the north by the Caribbean Sea; on the east by the 
Atlantic, British Guiana, and Brazil; on the west by 
Colombia, and on the south by Brazil. It is interesting 
to note that the coast line looks just the same to-day 
as when Columbus sailed along these shores over four 
hundred and twenty-five years ago. In fact, my 
Venezuelan friends say that as he reached the harbor 
of La Guayra, Columbus "gave thanks to God who 
delivered him from so many troubles, still showing him 
new countries full of peaceful people and great wealth." 
Whether or not Columbus put the " great wealth" in 
italics, I do not know, but in the quotations from his 
diary, which the Venezuelan people use, the last two 
words always appeared in italics! 

Hence it appears that from the earliest days of dis- 
covery this land abounded in great natural wealth, and 
it is remarkable that the riches should have remained 
practically untouched during these four centuries. 
The fact can be understood only when we remember 
that these Spanish explorers sought the easy road 
to wealth. So where time and labor figured in an 
enterprise, it was left for future generations to 
work out. Moreover, the richness of the soil really 



98 THE FUTURE OF SOUTH AMERICA 

proves a hindrance to development, for the forest 
growths are so thick that they are almost impossible 
to penetrate. 

Many people who have lived in tropical countries say 
that no country in the tropics can ever become a factor 
in world development. They insist that a warm climate 
makes any extended industry and commercial growth 
impossible. The very nature of the climate tends to 
laziness and causes men to seek a living without work- 
ing. Therefore they try to get employment in political 
life rather than in industrial enterprises, and this is 
the fundamental explanation why revolutions have 
been such an industry of Venezuela as well as of cer- 
tain Central American republics farther north. 

Personally I cannot bring myself to agree entirely 
with these views. Venezuela, a country seven hundred 
miles long and six hundred and fifty miles wide, having 
an area of approximately four hundred and forty 
thousand square miles, about twice the size of France 
and as large as the whole of New England, New York, 
Pennsylvania, New Jersey, Delaware, Maryland, with 
several more States thrown in, is sure to become a 
source of wealth to some one. With the broad and fer- 
tile plains, the tremendous forest, and the various other 
advantages, the climatic conditions must give way to 
advancing commerce and industry. 

The country itself consists for the greater part of low, 
level plains called llanos, cut off from the Caribbean 
Sea by mountain ranges. The capital, Caracas, is 
separated from its seaport town, La Guayra, by a 
mountain range over four thousand feet high. There 
are a great many small waterways and small streams in 
this country, all of which are insignificant when com- 



VENEZUELA 99 

pared with the Orinoco River, which is between six 
and seven hundred miles in length. 

The llanos are flooded in the rainy season and sun- 
scorched in the dry season, being therefore sparsely 
populated. Higher up in the valleys between the moun- 
tain ranges, the climate is better and more healthful; 
consequently this region is the place of habitation for 
most of the population. 

Travel to Venezuela has increased greatly in recent 
years, and every traveler returns home impressed with 
the commercial possibilities as well as the natural beauty 
of the country. As a result, I find that capital is already 
working its way to Venezuela and is slowly pushing 
several small railroads from the coast into the remote 
sections, while roads are being built so that the humble 
native is able to bring his products to market and buy 
goods with the profits therefrom. 

The population at present is approximately two mil- 
lion seven hundred and fifty-five thousand, and in 1875 
it was about two million. Immigration has fallen off 
during the past few years, and to-day only about ten 
per cent, of the population is white. When we consider 
that the people are crowded together in the mountain 
valleys, leaving the greater part, the plains, un- 
settled, it will be seen that the population has been 
increasing at about a normal rate. The few settlers 
on the plains are of Indian, Spanish, and negro extrac- 
tion, but in the valleys we come to a higher grade, a 
more intelligent class. 

The most important cities are Caracas, the capital; 
its seaport town, La Guayra; Valencia, and its seaport 
town, Puerto Cabello; Maracaibo, situated on the bay 
of the same name, and Ciudad Bolivar. 



100 THE FUTURE OF SOUTH AMERICA 

A former disadvantageous feature of La Guayra was 
that it was entirely open to the sea, having no protec- 
tion whatever, but it is at present being developed by a 
corporation. On the other hand, Puerto Cabello is 
partially protected by an arm projecting to the north 
of the harbor. The city of Maracaibo is protected, as 
it is situated a few miles in from the Caribbean. There 
are other seaports of minor importance, but, generally 
speaking, Venezuela has no good harbors. 

The custom regulations are very troublesome. There 
are no porters, all packages being carried to the custom- 
house by soldiers. These soldiers are prejudiced against 
carrying more than one package at a time, and you are 
charged so much a package. The people at the dock 
are not so scrupulously honest as those away from the 
coast, and it is very advisable to keep a watchful eye 
on your luggage. 

The lower class of people in the seacoast towns are a 
mixture of Spanish and Indian blood, making them 
somewhat warlike. There is considerable crime, and 
although the death penalty has been abolished, there 
are said to be in use to-day, situated below the sea or 
swamp levels, dungeons in which criminals are kept 
preparatory to trial. 

The occupations of the people depend almost entirely 
on agriculture. In fact, the prosperity of Venezuela at 
present depends upon its agricultural development. 
There is also considerable interest in mining, forest 
produce, and pearl fisheries. The mining operations 
and pearl fisheries are carried on by European and 
North American interests which have obtained valu- 
able concessions from the Venezuelan Government. 

The first thought which came into my mind when rid- 



VENEZUELA 101 

ing on the trains through Venezuela was : Why are not 
more cattle raised on the abounding, fertile prairies of 
the country? The land on both sides of the railroad 
from Puerto Cabello to Valencia appears superior to 
the finest cattle-raising land in the United States. How 
this warm climate would affect cattle I do not know; 
but it is not much warmer on these plains than in parts 
of Texas, and the summer weather on the table-lands 
compares favorably with the summer of Kansas or 
Nebraska. In the entire republic there are not more 
than two million cattle, while the plains cover about one 
third of the country, or one hundred and twenty thou- 
sand square miles. These plains should support fifty 
million. Moreover, no attempts are made at breeding, 
the cattle being small and thin. If some good stock 
were imported, it seems to me that Venezuela would 
offer a splendid opportunity in cattle raising. 

Considering its proximity to this country, and the fact 
that it is practically on the great trade lines which are 
to be established through the Panama Canal, its cattle 
would command a higher price than those raised far- 
ther south. The nearness to the markets is an advan- 
tage which these northern South American republics 
possess, and which in many ways will some day offset 
the disadvantages of the climate. Every year food 
animals are becoming scarcer in the United States, and 
it will be only a short time before we must turn to 
South America. A young man can now go to Venezuela 
and at moderate cost acquire vast tracts of this prairie 
land. Such a man, surrounding himself by proper asso- 
ciates, might develop almost at our very doors a great 
and profitable industry. 

Of course with cattle will come general farming. The 



102 THE FUTURE OF SOUTH AMERICA 

principal agricultural products now are coffee, sugar, 
cacao, vanilla, spices, fruits, and cotton. The principal 
forest products are rubber, fustic, divi-divi, and tonka 
beans. 

The following lists show what is being raised and ob- 
tained from Venezuela at the present time and the vari- 
ous ports from which these goods are being exported : 

Principal articles of export: coffee, cocoa, balata, 
cattle hides, gold, goat and kid skins, rubber, heron 
plumes (aigrettes), asphalt, copper ore, beef cattle, 
divi-divi, raw sugar, tonka beans, frozen beef, deerskins, 
sea salt, balsam of copaiba, pearls, cocoanuts, cotton, 
feathers. 

Exports by ports: Maracaibo, Puerto Cabello, Ciudad 
Bolivar, La Guayra, Carupano, Cristobal Colon, Cano 
Colorado, La Vela, Puerto Sucre, Pampatar, Guanta. 

As the exports of the country increase, so will the 
imports increase likewise, for almost every dollar which 
comes into the country is spent in buying manufactured 
cotton goods, flour, machinery, etc. In fact, the follow- 
ing list of imports for a recent year shows what is being 
brought into the country, and the list following that 
shows what ports are most enterprising in a commercial 
way: 

Articles of import: cotton textiles, flour, medicines 
and drugs, rice, butter, wines, machinery, sewing, knit- 
ting, and embroidery thread, kerosene oil, hams and 
bacon. 

Imports by ports: La Guayra, Maracaibo, Puerto 
Cabello, Ciudad Bolivar, Carupano, La Vela, Cano 
Colorado, Puerto Sucre, Cristobal Colon, Pampatar, 
Guanta, Imataca. 

The interpretation of these lists shows that if a man 



VENEZUELA 103 

is going to the country for cattle raising or other pro- 
ductive purposes, he should go to Maracaibo or Puerto 
Cabello and work inland ; but if he is going for commer- 
cial purposes, he should consider La Guayra first and 
then move on to some of the other towns which have a 
good export trade. La Guayra of itself does not amount 
to much, excepting as the port to Caracas, the capital, 
which is a few miles inland. I think the above tables 
are very suggestive of where it would be best to locate, 
and secondly, what industries are now being exploited. 

At the present time, out of the total exports of about 
twenty-five million dollars, three tenths go to the United 
States, three tenths to France, two tenths to Germany, 
and the balance to Spain and the United Kingdom. 
Considering the imports, about one quarter come from 
the United States, about one quarter from the United 
Kingdom, about one quarter from Germany and 
France, and the balance from various other countries. 

The coast low lands are very well suited for sugar 
cultivation, and to encourage the sugar-cane industry, 
the Venezuelan Government has refused to allow the 
importation of sugar. As is usual in every case like 
this, the sugar is of poor quality and high in price. 
Among forest products, rubber ranks first. As was the 
case with coffee some years ago, during the period of 
high prices there was a great increase in the planting of 
rubber trees. These trees are now bearing or will soon 
bear, and are flooding the market. As coffee and rubber 
are two of the most important articles of export, low 
prices for these products have a very depressing effect 
on business in general. 

Divi-divi, another forest product, is the pod of a 
shrub, and contains a great amount of tannin, which 



104 THE FUTURE OF SOUTH AMERICA 

is used in tanning leather. The tonka bean is used in 
the manufacture of tobacco and the extraction of per- 
fume. It is the kernel of the fruit of the sarrapia tree 
which grows wild in the thick forests near the boundary 
line of Guiana. Inasmuch as the bean is admitted to 
the United States free of duty, I believe that it might 
be profitable for men to learn how to develop this tree. 

At the present time, the transportation facilities con- 
sist chiefly of steamers plying on the rivers. Venezuela 
is rich in rivers, and these are navigable for a goodly dis- 
tance, besides possessing some valuable water powers. 
Railroads are a comparatively new feature. There 
are only twelve railroads in all, the shortest being five 
miles in length and the longest one hundred and eleven 
miles, which has the title of the " Great Railway of 
Venezuela." The railroad from La Guayra to Caracas 
is one of the most wonderful in the world. It is only 
twenty-two miles in length, but it zigzags along the 
mountain side, climbing to an altitude of thirty-two 
hundred feet and then dropping more than a thou- 
sand feet into the capital city. The total mileage of 
the railroads is only five hundred and fifty miles, while 
less than seven hundred thousand passengers are car- 
ried in a year. There are no electric lines except in 
the city of Caracas. 

The merchants of La Guayra and Caracas have made 
a scientific study of the idea of improving the wagon 
road between the two cities. They have in mind the 
establishment of good roads for automobiles, hoping 
that eventually the method of travel between the two 
cities will be solely by motor vehicles. A few years ago 
decrees were issued for constructing several new wagon 
roads in the La Guayra district. These roads will 



VENEZUELA 105 

penetrate to the cattle-raising center, to the coffee and 
cocoa district, and to the sugar-raising district. Other 
roads have also been started running directly into the 
gold-mining district. This is a great step forward, be- 
cause with good roads better machinery can be trans- 
ported to the mines, allowing more economical methods 
of extracting ore. It is also proposed to extend the tele- 
graph lines, which are under federal control, to the 
more important centers connected by these new roads. 

The construction of these new roads should be oppor- 
tune for our manufacturers of automobiles. In several 
of the consular districts, every automobile is now 
marked "Made in U. S. A." Heavy cars and trucks 
ought to find a good market. There are also develop- 
ments in electrical circles and for all-day currents. At 
present they use electricity for lighting purposes only 
at night, but I feel that now is the psychological time 
for manufacturers of electrical supplies to begin selling 
campaigns in Venezuela. 

Concerning this matter of automobiles, our consul at 
Ciudad Bolivar said: 

" There are numerous openings for the sale of auto- 
mobiles here, and United States manufacturers would 
do well to investigate the trade possibilities. Our cars 
are well known, and in fact every automobile in the 
place is of United States manufacture. 

" Owing to the hilly situation of the town, horse-drawn 
vehicles are positively dangerous, and it is a foregone 
conclusion that automobiles will eventually replace 
them entirely. The streets are undergoing continual 
alteration and improvement, with a view to adapting 
them to automobile traffic. 

"In spite of the opportunities thus arising, most 



106 THE FUTURE OF SOUTH AMERICA 

North American manufacturers are unrepresented here. 
It is impossible to obtain information about most makes 
of car. There are few garages or repair shops; nor are 
supplies of any kind to be had reasonably." 

There has been a great increase in manufactures in 
Venezuela during the past decade. There are cotton 
and jute manufactures located near the seaport towns; 
also paper factories. The industrial development in 
every line has made an advance. 

The foreign trade of Venezuela has been carried on 
by practically the same lines and the same steamers for 
years. The future service will be an improvement in 
both size and frequency of the ships now visiting this 
country, and the service from the United States ought 
to be greatly improved. 

The financial condition of Venezuela is said to be 
quite sound. A short time ago, the total public debt, 
both internal and external, had been reduced to less 
than thirty-five million dollars. Interest payments and 
installments of principal have been met punctually on 
most loans. 

One great drawback in Venezuela has been the fail- 
ure to protect foreign capital, and the country has been 
in constant trouble internally and externally. It has 
had difficulties with Holland, England, Germany, and 
Italy, which the United States, although also treated 
badly, adjusted by arbitration, and succeeded in get- 
ting payment for some of the foreign investors. In 
1908, however, as a result of Venezuela's repudiation 
of a Dutch loan, Holland blockaded the country and 
destroyed the navy. However, with the removal of 
Castro, things improved somewhat, but there have 
been constant internal troubles since that time. 



VENEZUELA 107 

When people began to talk with me in Venezuela 
about concessions and the laws of privilege I was 
rather at sea as to what they meant. Hence for the 
benefit of readers I herewith give the particulars con- 
cerning them. 

The Venezuelan law of privilege for unexploited in- 
dustries, adopted May 31, 1913, and approved June 13, 
provides that such concessions are open to public bid- 
ding under conditions outlined in the measure. Fol- 
lowing is a translation of the main provision of the law: 

Article 1. The Federal Executive, in conformity with 
Article 23, section 8, of the national Constitution, may grant 
temporarily exclusive privileges to those who establish an 
unexploited industry in the country. 

Article 2. The Federal Executive may concede such privi- 
lege for periods of five to fifteen years, according to the nature 
of the industry and the importance of the enterprise. 

Article 3. For the grant of such privilege the procedure 
shall be as follows: 

1. The petitioner shall address to the Ministerio de Fo- 
mento a brief which shall set forth the description of the in- 
dustry which it is proposed to exploit, the conditions of the 
exploitation, the capital appropriated therefor, the advantages 
which will accrue to the community, and the place or places 
in which the enterprise is to be established. 

2. Whenever the Federal Executive shall deem useful the 
establishment of an unexploited industry, a privilege for which 
shall not have been solicited by any individual, it shall offer 
the privilege therefor for sale by auction in accordance with 
regulations which it shall prescribe in conformity with this 
act. 

3. The Ministerio de Foment o shall cause to be published 
in the Official Gazette three times consecutively at intervals of 
ten days the petition for the privilege in order that any per- 
son who can furnish evidence of the existence of the same in- 
dustry in the country may interpose opposition thereto. 

4. Such opposition shall be substantiated and decided on 



108 THE FUTURE OF SOUTH AMERICA 

in a judicial proceeding with the petitioner and in accordance 
with established procedure. 

5. Should no opposition be interposed or should such be 
declared without foundation the Federal Executive will grant 
the privilege. 

Article 4. In the concession for the privilege, the period 
shall be specified within which the exploitation shall be be- 
gun, which period shall in no case exceed two years. 

Article 5. The industry shall be considered in exploitation 
when the enterprise shows that it has invested therein at least 
one fourth part of the prescribed capital. 

Article 6. If the petitioner should request, in addition to 
the privilege, exemption from national direct taxes and his 
petition be approved, the concession shall require the ap- 
proval of Congress. Special proviso: The Federal Execu- 
tive shall not be required to obtain exemption from municipal 
taxes, which matter must be taken up by the petitioner di- 
rectly with the municipality in whose territory he intends to 
locate the industry for which the privilege is sought. 

Article 7. As a guaranty that the exploitation will be com- 
menced within the period fixed under Article 4, the petitioner 
shall deposit in the national Treasury of Venezuela a sum 
equal to five per cent, of the capital specified as necessary for 
the enterprise. The deposit shall be returned to the enter- 
prise when it shows that it has commenced the exploitation. 
Otherwise it shall revert for the benefit of the national 
Government. 

Article 8. Cessation of the exploitation for the period of 
six months shall justify the termination of the privilege, ex- 
cept in the case of unforeseen event or superior force duly 
established. 

Article 9. The Federal Executive is authorized to provide 
for enforcement of this act in accordance with section 9 of 
Article 80 of the national Constitution. 

There may be obtained by application to the Bureau 
of Foreign and Domestic Commerce a list of the peti- 
tions that have been submitted to the Ministerio de 
Fomento, in accordance with the foregoing law, together 



VENEZUELA 109 

with the dates of the Official Gazette in which they have 
been published. 

It may be stated that from the fact that some of the 
petitioners are not generally known to have the capital 
stated or to be experienced in the industries mentioned, 
it seems probable that some of the requests for exclu- 
sive concessions are speculative in their nature, and 
the concessions are sought with a view to sale. On the 
other hand, some of the concessions are asked for by 
persons who have bona fide intentions to put into opera- 
tion the industries for which they ask special privileges. 

There are and have been many commercial agents 
in Venezuela from many foreign countries. Although 
the United States leads in the foreign trade, she has by 
no means a monopoly. German, Canadian, Japanese, 
and representatives of other countries are eagerly look- 
ing for openings. While other countries are making 
special systematic efforts to increase their share of 
Venezuela's business, it certainly behooves our United 
States exporters to do the same. 

Apart from the opportunities in cattle raising, there 
are many opportunities for selling goods. Our consul 
at La Guayra said : 

"I regret that there is not in the entire country a 
distinctive machinery house, one which can install a 
plant and nurse it along into successful operation. 
Were such a house in existence in Caracas, with a com- 
petent and practical man in charge, the sale of ma- 
chinery of various kinds could undoubtedly be increased. 

"The man in charge of machinery here should be 
practical, able, and fit to oversee the installation of the 
plants he sells, and to correct errors of operation. He 
should also be able to help the proposed user of ma- 



110 THE FUTURE OF SOUTH AMERICA 

chinery to get machines as he desires to complete his 
plant. He could keep in touch with the industrial de- 
velopment, and instantly follow up anything that 
promised business for the firm he represented. 

" Were the proposed buyers confident that they would 
find some one in the country who had a real interest in 
seeing that the machinery they bought rendered good 
service, and also could help them to that end, they 
would be more free to buy." 

In connection with general merchandising, the United 
States Minister at Caracas said : 

"It is in the nature of an event when a manufactur- 
ing concern or a jobbing house in the United States 
sends a traveling salesman to this city; but there ap- 1 
pears to be little real reason why Caracas wholesale or 
retail houses should not be familiar with our products. 
Except for automobiles, bicycles, typewriters, cash reg- 
isters, pianos, sewing machines, and patent medicines, 
nearly all of which are handled by accredited agents, 
most other United States products are unknown." 

When prices are low for Venezuela's principal ex- 
ports, coffee and rubber, general business is not good. 
But to my mind the time to start a business is when 
things are at a low ebb, and when the new business can 
increase as the prosperity of the country increases. 
There may not now be much opportunity in raising 
coffee or producing rubber in Venezuela, but money is 
being made in raising sugar-cane. For North American 
exporters there are opportunities in the following lines : 
bags and bagging, bottles (in spite of the fact that they 
have a small glass industry in one of the cities), cheese, 
cement, cotton manufactures, iron and steel products, 
malt, oils, nails, hats, butter, canned meats, electrical 




Copyright by Underwood & Underwood 



HAULING CARLOADS OF CANE INTO THE SUGAR MILL, 
CARACAS, VENEZUELA 



VENEZUELA 111 

apparatus, paper, sardines, woolen goods, and a great 
many others. 

Outside of the tremendous asphalt industry, which is 
at present controlled by the big American and British 
interests, and in which there is no opportunity for the 
small man, not much is being done at present in the 
field of minerals. There are oil prospects, but no de- 
velopment is taking place. In fact, it is said that the 
known oil prospects have already been seized by certain 
North American interests. In the western part of 
Venezuela there is a large deposit of remarkably good 
coal. This region is north of Maracaibo; the distance 
from deep water is considerable, but there is sure to be 
a large development here as soon as transportation 
facilities permit. 

Iron mines are being worked in the Imataca district 
on the Orinoco River. A Canadian company is now 
operating and preparing for a large shipment each 
year. Options on other mines have been taken by 
some Americans, but little active operation exists. 
Certain rich copper deposits have been discovered, and 
one company at Aroa, in Venezuela, declared dividends 
of thirty per cent. Copper ore crops out at various 
other places, but little development has taken place. 

Gold mines are being worked in the Yuruary dis- 
trict, and the gold output is constantly increasing. 
The Venezuelans claim that the difficulty is not in 
finding coal, iron, copper, and gold, but in transporting 
the machinery to work the mines and in getting the 
ore out. The man who goes to Venezuela to sell ma- 
chinery will not only make a profit on his sales, but 
with proper financial connections at home would have 
wonderful opportunities of purchasing side interests in 



112 THE FUTURE OF SOUTH AMERICA 

certain mining and manufacturing enterprises which 
look good. 

If I were going to Venezuela in the machinery busi- 
ness, I would first try to sell everything possible for 
cash and as much more as I could on approved credits. 
In addition to this, I would carefully study all new 
projects in which my machinery was to be used. For 
instance, if selling machinery to a mining company, I 
would study the opportunities for profit which that 
mining company has. If selling machinery for water- 
power development, I would take a trip up the river 
and see the opportunities which this presented. If 
selling machinery for the installation of a factory, I 
would study the possibilities of profit in connection 
with this factory; and certainly this is the place to 
start a cotton mill. Once in a while I would be sure to 
find an extremely profitable proposition where for a 
small sum of money I could acquire a large interest in 
the enterprise. 

For a young man to go to Venezuela with money and 
arbitrarily to hunt up these opportunities, would be 
dangerous. Such a man would be in danger of being 
taken in. But a man located there in the machinery 
business would have a wonderful opportunity both of 
locating enterprises at the psychological moment, and 
of knowing which were likely to be good and which bad. 

A study of statistics leads me to believe that Vene- 
zuela has a future, and that it will arrive at this future 
before Colombia arrives at hers. Both Colombia and 
Venezuela need good immigration, which in turn must 
create stable governments and secure to all the profits 
of their honest labors. 



CHAPTER VIII 

Colombia 

Colombia will some day offer a most inviting field 
for the manufacturers of the United States, and it 
should also become a favorite resort for the tourist when 
its natural attractiveness becomes better known. 
To-day the United States imports about twenty mil- 
lion dollars' worth of goods each year from Colombia 
and exports less than half as much. This balance of 
trade should be changed, but it must also be remem- 
bered that the people of that country are none too well 
disposed toward us on account of the Panama affair, 
in which Colombia lost the extensive territory now 
belonging to that republic, although the independence 
of Panama has not yet been officially recognized by 
Colombia. The people of Colombia are perhaps the 
most strongly Spanish in language and tradition of 
any of the South American countries, and we have been 
greatly handicapped in trading with them by our fail- 
ure to send the proper kind of representatives down 
there. Perhaps the most perfect Castilian is spoken 
in Colombia of any of the Latin-American countries, 
and this leads me to emphasize again the importance 
of this language in dealing with Latin America. With 
the exception of Martinique, where French is spoken, 
and of Brazil, which is Portuguese, the whole of Latin 
America is Spanish. Thus to develop trade and fra- 



114 THE FUTURE OF SOUTH AMERICA 

ternal relations with Central and South American coun- 
tries we must teach our children Spanish. On a visit 
to Cuba I was introduced as from Boston, and one of 
the Cuban merchants at once spoke up: " Boston — 
that's where they teach Spanish in the high schools. " 
This fact had made more impression than anything 
else Boston had done. Hence, in developing foreign 
trade with Colombia or elsewhere, we must bear this 
problem of language in mind. 

Colombia is very accessible to the United States, as 
it has about a thousand miles of seacoast on the Pacific 
and almost as much on the Caribbean Sea. The area 
of the country is about five hundred thousand square 
miles, or about the size of Alaska, and the population 
is over five million, or equal to that of Greater New 
York. Like many other parts of South America, 
Colombia has a history reaching back to the early 
Spanish rule. The coast of Colombia was part of the 
famous " Spanish Main." Columbus sailed along its 
coasts on his fourth and last voyage, and it is the only 
country which bears his name. Later the Spaniards 
conquered the land and subdued the Indians, a highly 
civilized people, similar to the Incas of Peru. The 
capital was established at Bogota in 1536. Under the 
leadership of Simon Bolivar, freedom from Spain was 
secured in 1819, and in 1821 he was elected the first 
president of " Greater Colombia." Later the title was 
changed to the Republic of New Granada. This title 
was subsequently altered to that of the Grenadine 
Confederation, then to the United States of Colombia, 
and lastly to the Republic of Colombia. 

Colombia is a country of mountain chains and val- 
leys. Extending from north to south are three mountain 



COLOMBIA 115 

ranges. These ranges are far apart, and there are ex- 
tensive valleys and table-lands lying between. In the 
southeast there is an extension of the llanos of South 
America, and here is one of the great cattle-raising dis- 
tricts. In the valleys of the numerous rivers are some 
of the densest forests in the world. With its high moun- 
tains and table-lands Colombia has almost every vari- 
ety of climate, soil, and scenery possible. 

The resources of the country are about equally divided 
between agricultural and forest products and minerals. 
Although the exports of coffee are large, and the coun- 
try produces more emeralds than any other, yet the 
possibilities have not been realized, so that I believe 
the latent wealth and the favorable conditions for devel- 
opment make Colombia a country worthy of serious 
attention. The agricultural products include rubber, 
coffee, cacao, bananas and other fruits, and vegetable 
ivory. The entire country is suitable for stock raising, 
but cattle are now raised mainly for domestic consump- 
tion. Hides are exported, but there are great oppor- 
tunities for the establishment of refrigerating plants. 

The timber resources have not been exploited, yet 
considerable mahogany appears on the list of exports. 
Dyewoods and plants with medicinal properties offer a 
wide field of development, and there are many fine 
hardwoods suited for furniture manufacture. 

Mining offers tremendous possibilities. Gold has 
be'en mined for centuries in both the quartz of the 
mountains and the sands of the rivers. Silver is also 
produced, and the platinum beds rival those of Rus- 
sia. There is some oil which resembles the product of 
our Texas fields. All, or nearly all, the emeralds mined 
to-day come from Colombia. All of these mines are 



116 THE FUTURE OF SOUTH AMERICA 

owned by the government and leased to private cor- 
porations. A curious fact in the history of some of 
these important mines is that they were closed and lost 
to the world for over a hundred years and only re- 
discovered in the jungle a short time ago. 

The chief need of the country, however, and the rea- 
son why its vast resources must be left for another 
generation to develop, is the lack of suitable means 
of communication. There are few railroads, and the 
river systems are the chief channels of commerce. The 
greatest of these is the Magdalena, which rises in the 
Andes under the equator, and has a length of eleven 
hundred miles. This river resembles the Mississippi, 
for the waters are muddy, and it has a large delta at 
its mouth. Steamboats of the old Mississippi type are 
used as means of communication. Along the lower 
stretches the scenery is tropical, but as the river ap- 
proaches the table-lands, the country becomes fertile 
and healthful. The inhabitants of the lower country 
are almost all negroes, and this section, which was rich 
and well cultivated under slave rule, is now almost 
deserted. In the upper reaches of the river, the coun- 
try people are Indians. 

Bogota, a city of one hundred and twenty-five thou- 
sand people, lies upon a fertile table-land at an ele- 
vation of eighty-six hundred feet. It is built on 
terraces, and has the usual narrow streets of Spanish- 
American cities. The houses are usually not more 
than two stories in height, owing to the frequency of 
earthquake shocks. There are electric railways, tele- 
phones, and telegraphs, and the Spanish population 
is noted for its culture. It has been called the Athens of 
South America. Bogota is the central distributing 



COLOMBIA 117 

point of the country. So far, no continuous railway 
system exists in the republic, but there are many 
short narrow-gauge lines. A transcontinental line is 
proposed. The Colombian Government has authorized 
a subsidy of sixteen thousand dollars a mile and land 
grants for railroad construction, and it is on this that 
the future of the country depends. 

Colombia is a land of contrasts, from the tropic coast 
to the temperate plateau and even to the snow-clad 
mountains of the Cordillera. Although it has not yet 
become a tourist country, every attraction of natural 
beauty can be found there. Near Bogota are the falls 
of Tequendama, higher than Niagara, and many in- 
teresting remains of the aboriginal inhabitants can be 
found. 

Transportation should give this country a most 
prosperous future, but until that is accomplished, there 
is little for the business man of the United States. 

I take this opportunity to say a word regarding what 
Colombia and other South American countries are 
doing along social and welfare lines. In many ways 
these countries are much more advanced than is our 
own. All the leading universities of Latin America are 
government owned, instead of being privately endowed 
and controlled, as in this country. The hospitals and 
other leading charities are likewise state affairs, for 
which all are justly taxed. Without doubt we are 
coming to this in the United States, but we are still a 
long distance in the rear. 



CHAPTER IX 
Ecuador 

Ecuador has long been known as one of the pestilen- 
tial places of the continent, but it has started to clean 
up, and will soon be a good place in which to live. At 
any rate, it offers many opportunities to outsiders, es- 
pecially to our manufacturers, if they will only attack 
the problem properly. 

Before the Spaniards came to the western coast of 
South America, Ecuador was inhabited by the Incas 
with their great civilization. But when Pizarro took 
the nation of the Caras, a people similar to the Incas, 
and executed its king, he sent one of his lieutenants to 
capture this kingdom of Quito, which was accom- 
plished with little difficulty. Then, according to their 
usual custom, the Spaniards proceeded to take pos- 
session of estates of the inhabitants, and apportioned 
the land out among themselves. The province remained 
under the same rule as Peru for many years. Later 
it was tossed back and forth between New Granada — 
now Colombia — and Peru, but early in the nineteenth 
century it began to move toward independence. These 
efforts met with varying success, and finally, in 1830, 
the constitution of the Republic of Ecuador was pro- 
claimed, and the republic has since continued with as 
little friction as could be expected in a South American 
country. 



ECUADOR 119 

This constitution is quite liberal, with the same rights 
granted to foreigners as to citizens, and is progressive 
in allowing to women the same rights as to men, and the 
free administration of their personal property, even 
when married. 

Foreigners may acquire property and may establish 
banks under the same conditions as the natives, and 
as funds set aside for the public debt " cannot be di- 
verted" for other purposes, this tends to serve as a 
guarantee of public credit. 

In addition to the usual departments of the republic, 
there is the department of public instruction, which has 
control of all public and private schools, together with 
other educational institutions. Since the school of fine 
arts, the conservatory of music, and the national library 
and astronomical observatory are mentioned among 
these, you might conclude that Ecuador is highly civil- 
ized, until you read in its president's message that 
they were founded within ten years. The postal, tele- 
graph, and telephone systems are under the supervision 
of this department, as are also matters relating to 
agriculture and general industries. At Guayaquil, the 
chief seaport, there are two telephone systems and 
long-distance service to the capital, Quito. The post- 
office service is efficient and well administered, and 
the postal money-order system has been installed 
recently. 

Ecuador has an estimated area of one hundred and 
sixteen thousand square miles, or one equal to New 
York, New Jersey, Pennsylvania, Delaware, and 
Maryland combined. Its population of about a 
million and a half is almost wholly located near the 
coast, on the steep western sides of the Andes. The 



120 THE FUTURE OF SOUTH AMERICA 

eastern part is a portion of the great Amazonian 
plain and must be well watered and fertile, but is 
little explored. 

Travelers have given Guayaquil the unenviable rep- 
utation of being the "pest hole of the continent," as 
it has frequent and serious epidemics of malaria and 
yellow fever. It stands in an unusually bad location, 
among swamps at the mouth of a river. But since 
Havana, Panama, and other such places have been 
made habitable, it seems not impossible that condi- 
tions may be improved here. Indeed, steps have al- 
ready been taken in this direction. Colonel Gorgas, 
who cleaned up Havana and Panama, has investigated 
Guayaquil, and as a result of his report the Chamber 
of Deputies authorized a loan of ten million dollars 
gold for the work in sanitation, which insured a new 
sewage system and modern water works. A plague- 
prevention campaign should also be started, as the 
health statistics usually show cases of this disease in 
Guayaquil. 

The entire country is waking up and becoming in- 
terested in modern improvements and methods. So it 
would seem that there might be good opportunities in 
Ecuador for engineers and builders, and those inter- 
ested in other enterprises connected with the improve- 
ment of the country. There are about four hundred 
miles of railroad in Ecuador, and three hundred miles 
of this are included in the one road between Guayaquil 
and Quito. This road was completed in 1908, and the 
regular trains make the distance in two days. A shorter 
line from the coast is now under construction, open- 
ing up an exceedingly fertile country, which already 
yields immense quantities of cacao, although capable 



ECUADOR 121 

of further development. Several other small roads 
are also being built. 

An active river and coast service is carried on by the 
many small boats, including steamers, sailing vessels, 
and canoes. Most of the rivers are navigable for a con- 
siderable distance inland. The Guayas, at whose 
mouth Guayaquil is situated, allows the passage of 
steamers for forty miles, and of smaller vessels for 
two hundred miles. The eastern part of Ecuador 
may be reached from Brazil by the Amazon and its 
tributaries. 

Ecuador exports the usual tropical fruits and also 
coffee, cotton, tobacco, and rubber. The last named 
may be gathered and brought to market every month 
in the year, and all over the world there is an increas- 
ing demand for it. Sugar-cane is raised in little more 
than sufficient quantities for home consumption, 
though some is sent to other countries. The extensive 
forests contain trees of many valuable varieties, in- 
cluding, besides rubber and the various palms, the 
cinchona, from which quinine, ever necessary in this 
climate, is obtained; the mangrove, an agent in tan- 
ning; and the silk cotton tree, whose fiber is known 
to the commercial world as kapok. Cattle and sheep 
are raised, as there are extensive grazing lands, espe- 
cially on the uplands. Hides bring good prices and are 
largely exported, as are also goatskins and alligator 
skins. 

The mineral wealth of the country is known to be very 
large, but is little developed, owing to the inadequate 
means of transportation. Gold, mercury, copper, iron, 
lead, silver, and platinum have been found, as well as 
large deposits of sulphur. Petroleum has also been dis- 



122 THE FUTURE OF SOUTH AMERICA 

covered in paying quantities, and these deposits are to 
be leased to some company for development, but any 
United States company is barred. There are great coal 
fields in the interior but little developed. 

Ecuador has one shoe factory, employing about a 
hundred people, with an output of sixty thousand pairs 
of shoes a year. Manufacturing, however, is a limited 
industry, and much of the work is done by hand in a 
primitive way. Guayaquil makes important articles of 
consumption, even including ice. One of the most suc- 
cessful manufactures mentioned is that of matches. 
A well-equipped tannery is also in operation at this 
port, and smaller establishments produce bags, cotton 
fabric, and mosaics. The intense heat at this low, 
swampy place must discourage very active endeavors 
in any line. The higher lands, however, boast more 
manufacturing, Quito having flour mills, foundries, 
sugar refineries, and ice factories. Shoes, wagons, 
saddles, embroideries, lace, and other things are made 
by hand. Quito is especially noted for the large amount 
of religious painting and sculpture done by artists 
and sent to other countries. 

Though Quito is almost exactly on the equator, yet 
its elevation of over nine thousand feet insures it a 
pleasant climate, and one far more healthful than that 
of the low lands. There is less rainfall and a shorter 
winter season than at Guayaquil. At Quito are situated 
most of the higher educational institutions. The na- 
tional astronomical observatory is quite an imposing 
building. The government expends about one hundred 
and fifty thousand dollars annually in the maintenance 
of its universities at Guayaquil, Quito, and Cuenca, and 
a law school at Loja. The President recommends the 



ECUADOR 123 

employment of more foreign teachers in these institu- 
tions and also the establishment of a school for the 
training of teachers. 

Ecuador really has four zones of climate, as the alti- 
tude varies from sea level to over twenty thousand feet. 
Therefore there are the Tierras Calientes or hot low 
lands; the Templades, at an altitude of from six to 
nine thousand feet; the Frias, including the plateau 
on which Quito is situated; and the Nevadas, or Andes, 
whose tops are always covered with snow. 

Ecuador possesses great wealth in her cacao groves. 
Although scholars claim that we should use the spelling 
" cacao" instead of "cocoa," yet the extensive adver- 
tising of the newer form of word will make it hard to 
alter the spelling, at least in English-speaking coun- 
tries. So that now there is the trade distinction, cacao 
referring to the raw product, and cocoa to the finished 
article. Cacao is entirely different from the coca, a 
Peruvian plant, whose leaves are chewed by the Indians 
for their stimulating effects, and which contains co- 
caine; from the cola nut grown in West Africa, which 
is slightly like it; and from the cocoanut, to which it 
is not even distantly related. 

The great popularity of chocolate and cocoa, both as 
beverages and for flavoring, makes the market for these 
products practically unlimited. With the opening of 
the Panama Canal, the great cacao estates in Ecuador 
are more accessible for supplying the increasing demand 
of the world for this favorite product. Cacao must be 
raised in the torrid zone, below an altitude of twenty- 
five hundred feet, so the actual labor could probably 
not be performed by the northerner who might 
want to invest in the industry; but his capital would 



124 THE FUTURE OF SOUTH AMERICA 

without doubt bring him great results. In an average 
year about eight times as much cacao in value was ex- 
ported as Panama hats or coffee, which come next in 
quantity in the list of exports. 

The Panama hat was originally not made in Panama, 
but received that name because that city was the dis- 
tributing port. It was manufactured in Manabi, 
Ecuador, and its native, name was "jipijapa," a name 
now used in the markets for the inferior grades, not 
real Panamas. Under the fostering care of the govern- 
ment, a school has been established in Panama with 
teachers brought from Ecuador to instruct in the 
weaving of hats, so that the name is no longer a mis- 
nomer. Honduras also has a school and a flourishing 
industry in hats. 

When weaving such hats, the straw must be kept 
moist and the weavers work in the late twilight or 
early dawn, the only times available for making the 
best grades. A skilled worker will finish a hat, work- 
ing these few hours a day, in five or six months, and the 
women and children are the most deft with their fingers 
in this industry. 

A rich planter of Ecuador is willing to pay as high 
as one hundred dollars for a Panama hat, and it is of 
the finest texture, such as is seldom seen in northern 
countries. These hats of the very best quality are so 
soft and flexible that one may be folded and carried in 
the pocket without injury. One which was sent to the 
former Prince of Wales could be folded into a package 
no larger than a watch. 

Besides exporting about a million dollars' worth of 
hats, Ecuador sends to other countries in one year 
many thousand dollars' worth of the torquilla straw. 




Copyright by Underwood & Underwood 
CACAO GROWING ON THE TREE, LA CLEMENTINA, ECUADOR 



ECUADOR 125 

Some button man might find it advantageous to invest 
in a forest of tagua palms, whose nuts furnish the vege- 
table ivory of commerce. This tree grows wild, and the 
natives gather the nuts, which fall from the trees, and sell 
them to the local merchant or exporter. It would seem 
as if this is not a highly organized industry, though the 
nuts are such a good substitute for the ivory obtained 
from the elephant's tusks that there is always a de- 
mand for them. The vegetable ivory is used for making 
umbrella handles, chessmen, and other small articles, but 
the principal use for it is in the manufacture of buttons. 
Ecuador exports annually about twenty thousand tons 
of this product, sharing the trade with Colombia. 

The foreign commerce of Ecuador is about twenty-five 
million dollars a year, with little variation. The bulk 
of the cacao goes to France, the rubber to England, 
and the vegetable ivory has gone to Germany. The 
leading imports are textiles, foodstuffs, and iron and 
steel. The United States takes more cacao beans than 
any other country except France, some rubber, and 
more coffee than any other country except Chile. The 
principal imports from the United States include iron- 
ware, barbed wire, agricultural implements, leather 
goods, boots and shoes, drugs and medicines, mineral 
oils, and foodstuffs — mostly packing-house products 
and flour. 

The future of Ecuador lies in agricultural develop- 
ment and in mining — especially agriculture — but 
the people should not pin their faith to cacao alone. 
Diversified products are necessary for the well-being of 
every country. Instead of planting more land to cacao, 
it would be better for Ecuador's future if hemp, rice, 
and other things were developed highly. 



126 THE FUTURE OF SOUTH AMERICA 

The United States can supply Ecuador with every- 
thing consumed in the country, and with the possible 
exception of cotton goods, by proper efforts can control 
the market. Moreover, owing to the general prejudice 
against Ecuador, there is less competition here than 
elsewhere. 

Ecuador is not a large country and thus has not the 
future that many other Latin-American countries have. 
On the other hand, during the next few years Ecuador 
is likely to show a greater percentage of gain than many 
of them. 



CHAPTER X 
Peru 

Peru has long been known as the treasure chest of 
South America on account of the immense amounts of 
gold and silver which her mines have given to the 
world, and has also been of interest as the seat of the 
ancient empire of the Incas and their civilization. 
When the Spanish fleets came to Mexico, under the 
lead of Pizarro, the militarists went south, while the 
missionaries, under the lead of Father Junipero Serra, 
of the Franciscan Order, went north. The militarists 
reached Peru, where they wantonly destroyed and plun- 
dered. The missionaries reached California, where they 
industriously taught and produced. I know of no 
better way to see the evidence of the comparative fruits 
of militarism and religion than to visit both Peru and 
California to-day. Peru is an undeveloped and back- 
ward country; California, a veritable garden spot. 
The former country is said to be the least developed 
portion of South America, while the Golden State is 
certainly one of the most beautiful sections of North 
America. 

It is also interesting to note how Peru and California 
compare in other ways. They are similar in shape, 
though Peru with its seven hundred thousand square 
miles is more than four times as large as California; 
in fact, it is about three times as large as Texas. Both 



128 THE FUTURE OF SOUTH AMERICA 

have mountain ranges running north and south, with 
climates varying according to latitude and altitude. 
The temperature of each is greatly influenced by 
ocean currents, and each has a wet and a dry season. 
Moreover, the evenness of temperature for which San 
Diego is noted is likewise found in Lima and other 
Peruvian cities. The population of Peru is estimated 
at five million, or about twice that of California. On 
the other hand, the difference in railway mileage, 
water-power development, and irrigation projects is 
greatly in favor of California. 

I bring up these unpleasant (for Peru) comparisons, 
reminiscent of the crimes Spain committed against this 
country, to emphasize that a new epoch is commenc- 
ing, much more important than that which began when 
Pizarro crossed Panama in 1524. That year, men 
crossed in groups on horseback; now men cross in large 
groups on passenger ships. By the opening of the Pan- 
ama Canal, Peru is brought within four hundred miles 
as near to New York as is Mexico City by rail. This 
surely means a new awakening and a change in the 
business life and development of the country. 

Most people make the mistake of judging Peru by the 
seacoast. From the time one leaves Panama until Val- 
paraiso is almost reached, little is visible but a " stern 
and rock-bound" coast. But unlike our New England 
coast, this one is both barren and sandy. Not a tree, 
shrub, or blade of grass is visible from the steamer; 
only mountains of white rock and sand. Such was not 
always the case, for the old inhabitants built irrigation 
works which probably made much of this desert a 
profitable agricultural country. 

Sailing on these tropical waters, one expects to be 



PERU 129 

warm at least, if not unbearably hot, but after passing 
the shores of Ecuador and on nearing the first port in 
Peru, the temperature begins to change and it becomes 
almost cool. From June to September it is so cloudy 
that the shore is hardly visible, but from November to 
April it is bright and clear. The coolness is due to the 
presence of the Antarctic current, equal in length and 
volume to the better-known Gulf Stream of the Atlan- 
tic. This current flows along the coast from the south- 
ern part of the continent of South America to a point 
just at the boundary between Ecuador and Peru. North 
of this point, all the usual conditions of the torrid zone 
at sea prevail, but to the south entirely different condi- 
tions are encountered. No rain falls on the coast of 
Peru; there are localities where it has not been known 
to rain for eighty years. In the extreme northern part 
they have, once in seven or eight years, a week's steady 
downfall; but most of the coast is a desert, excepting 
along the banks of the fifty-seven small rivers which 
are fed by the snows of the Andes. This barren strip 
extends for two thousand miles north and south, and is 
from forty to sixty miles wide. 

As one comes from the north, the first Peruvian port 
of importance is Payta, situated in an almost land- 
locked harbor, once the rendezvous of a great whaling 
fleet. The town is at the base of sandy bluffs, with small 
adobe and bamboo houses. The streets are narrow, 
crooked, and unpaved. Besides two or three shipping 
offices and a few stores, there is a railroad station for a 
short line which extends up to the town of Piura, the 
capital of this department, as the provinces are called. 
The water supply of Payta is brought down on this 
railroad every day. Cotton is grown in this vicinity 



130 THE FUTURE OF SOUTH AMERICA 

along the Piura Valley; there are oil wells a few miles 
to the north (the oil regions cover an area as large 
as Holland, and yield a better quality of oil than is 
found in the United States) , and coal and salt are found 
to the south. This region is noted for fine straw hats 
and goat and kid skins, and there are about twenty 
tanneries in the country. There might be a good chance 
here for the shoe or glove man to invest, as these skins 
are said to be exceptionally fine. 

Piura has soap and candle factories, ceramic works, 
and a cotton-seed oil mill, and is also the trade center 
of the country. 

Six hundred miles south of Payta is Callao, the princi- 
pal port of Peru and the distributing center for the bulk 
of the merchandise imported into the country. The 
harbor is spacious and slightly protected on the south- 
west by the picturesque and rocky island of San 
Lorenzo. The town is made up mainly of warehouses, 
and as a matter of fact it is only the port of Lima, the 
capital city of Peru, which is ten miles inland and 
which is reached by both steam and electric cars. Al- 
though Callao is the largest port in Peru, large steamers 
cannot reach the shore, and the passengers and freight 
are obliged to go ashore in small boats. In fact, I know 
of no port on the west coast of South America where all 
freight is not hoisted over the side of the ship and 
dropped into the lighters below. For this reason, and 
on account of the fact that most inland transporta- 
tion is by mule back, it is absolutely necessary that 
goods shipped to South America should be carefully 
packed in small boxes or bags. Textiles, flour, shoes, 
and everything unbreakable should be bound up in 
bags. Machinery should be boxed; but no box should 



PERU 131 

be larger than can be carried on the side of a donkey. 
I have seen broken cases on the wharves from concerns 
in the United States, which were a disgrace to their 
shippers. 

The troubles which the Peruvians have had in trading 
with the United States are well illustrated by the fol- 
lowing remarks of one of my Peruvian acquaintances : 

" Suggest to your friends who are shipping goods 
down here that they send for some Peruvian chap to 
enter their employ. We are absolutely tired of writing 
your people to pack your goods in small, strong cases. 
Our letters are followed for a few weeks, and then things 
are just as bad as ever again. Do the concerns in the 
United States continually change shippers, or are these 
shippers void of memory? 

"We have the same trouble regarding colors. As 
you know, the Peruvian women wear black, and our 
consumption of black goods is very large; but this 
does not mean that ^we run to other sober colors. Be- 
cause we order a large quantity of black goods, is no 
reason why a jobber should refuse to supply reds, yel- 
lows, and greens when we specifically order them, and 
yet they are continually doing so! 

"About two months ago I ordered several pieces of 
black goods with a supplemental order of greens, urg- 
ing that the shipment be rushed. Imagine my disgust 
last week to get a letter asking if I did not mean ' grays ' 
instead of ' greens.' Now any one acquainted with the 
Peruvians knows that they wear little gray. Either 
they are in mourning and want black, or else are not in 
mourning and want the brightest colors of the rainbow. 
If each of these concerns could have a Peruvian boy in 
its export department, many of these mistakes could 



132 THE FUTURE OF SOUTH AMERICA 

be avoided. Speaking of colors, let me say that a for- 
tune awaits some enterprising Yankee who will buy up 
second-hand automobiles in your country, repaint them 
red, green, or yellow, and ship them down here." 

I introduce this conversation because it illustrates 
certain fundamental difficulties which have prevented 
us from getting the trade of these South American 
countries. 

Pizarro landed at Callao and founded the city of 
Lima in 1535, calling it the City of Kings. Pizarro con- 
quered the empire of the highly civilized Incas and 
seized their gold and silver. He gained possession by 
accepting an invitation from the unsuspecting emperor, 
and then, after taking him prisoner in his own capital, 
put him to death after a mock trial. Six years later 
Pizarro was assassinated in his palace, which still 
serves as the capitol of the country. The forty or 
more viceroys who succeeded one another in the gov- 
ernment of this vast country continued Pizarro's policy 
of destroying the civilization of the Incas and en- 
slaving the Indians. 

Early in the nineteenth century, a movement for in- 
dependence began, and this was achieved in 1824 under 
the leadership of Bolivar and Sucre. Boundary ques- 
tions have been troublesome ever since the beginning 
of the republic, but if they are ever settled, Peru may 
have an opportunity to develop her resources and take 
her deserved place in the world. Peru and Ecuador 
have continually disputed their boundary. There 
have also been similar disputes with Chile, but these 
are unlikely to produce hostilities at present. Revo- 
lutions still prevail in Peru. One took place as re- 
cently as February, 1914, resulting in the downfall of 



PERU 133 

President Billinghurst. Since 1890 it is said that Peru- 
vian finances have been in the hands of the Peruvian 
Corporation which has practically acted as a receiver. 
I, however, consider this statement unjust; but if it 
is true, certainly the task has not proved particularly 
remunerative to either party. 

As now bounded, Peru has a coast line which would 
extend from Boston to Key West, while if placed in the 
western United States, it would reach from San Fran- 
cisco to Kansas. Peru is naturally divided, as are so 
many South American countries, into three distinct 
sections or zones: the narrow, barren coast, averaging 
about twenty-five miles in width, which contains the 
most important cities; the great plateau in the Andes 
regions ; and the rich forest lands to the east, containing 
the sources of the Amazon — well watered, but sparsely 
inhabited and little developed. 

Lima, a city of one hundred and seventy thousand 
people, stands in the first zone on a level plain about 
five hundred feet above the sea, on both banks of the 
river Rimac, which is dry except when swollen by the 
melting snows of the Andes. Then a large part of 
the waters are diverted to irrigation. Lima is one of the 
most progressive and interesting cities in South Amer- 
ica. It is well situated, both for business and health, 
and is also replete with the romance of the Spanish con- 
quest and the times of Pizarro, whose remains lie in the 
cathedral. For eight months in the year there is not a 
cloud in the sky, while for four months, June to Sep- 
tember, the sun is usually obscured. Lima is a type of 
the Spanish city, with a great central plaza, filled with 
tropical plants and surrounded by the cathedral, impor- 
tant buildings, and business blocks. Formerly it was 



134 THE FUTURE OF SOUTH AMERICA 

a walled city, with heavy stone walls along the banks 
of the river and the other three sides, and the ruins still 
exist. 

The streets of Lima are from twenty to thirty feet 
wide, and run at right angles. Most of them are paved 
with cobblestones. The houses are painted blue, yel- 
low, or pink ; and for the most part are only one story 
in height, though the stores facing the Plaza are of two 
stories, the second projecting so as to form an arcade 
around two sides of the square. Some of the houses are 
built of brick, but most of them are plastered. One 
traveler said that a burglar needs only a wet sponge and 
a knife to enter any house in Lima. This, however, is 
an exaggeration, when one takes into consideration the 
surprising thickness of the walls, for they are from two 
to six feet through. Few windows open on the street, 
the rooms being lighted from the interior court, while the 
entire front of the stores opens as a door. The preva- 
lence of earthquakes accounts for this style of build- 
ing, for Peru has suffered considerably from this cause. 
Most of the buildings, therefore, are modern and ordi- 
nary, but a few which have withstood the earth- 
quakes have beautiful carvings on the balconies. The 
population is a mixture of Spanish, Peruvian, Indian, 
Japanese, and Chinese (twenty thousand), besides 
English. Much of this population is poor but proud, 
and social distinctions are very marked. 

The mean annual temperature in Lima is 66° Fahr- 
enheit. It may well be considered a "mean tempera- 
ture," said a traveling salesman to me, "for it is never 
cold enough to have a fire, although from June to Sep- 
tember it is usually cold enough to make you wish for 
one." It never rains, but during these four months it 



PERU 135 

is continuously cloudy and often foggy. There are no 
chimneys in the small houses, cooking being done by 
charcoal fires on a porch. Lima has electric lights and 
a system of water works. Education is provided for in 
elementary schools, and the University of Lima was 
founded a hundred years before the founding of Har- 
vard. As this has always been a strongly Catholic 
country, there are many monasteries, and the cathe- 
dral founded by Pizarro is the most striking building 
in the city. The religious question has had a great in- 
fluence on the country. Even when I was last in Peru, 
a Protestant church could not have a regular meeting- 
house. All Protestant meetings are held in secret. I 
love the Peruvians, and I believe that the Roman 
Catholic religion may be the best possible for these 
people, but I do not believe that Peru will enjoy much 
prosperity until it separates politics and the church. 
Moreover, the same comment may also apply to Chile 
and certain other Latin-American countries. 

Manufacture of many necessary articles is carried on 
in Lima, but comparatively little is exported. There 
are attractive botanical and zoological gardens, and 
the city also boasts of the largest bull-fighting ring in 
the world. Lima is the present commercial and financial 
center of the country, and there is no doubt in my mind 
that for some time to come it will be the leading West 
Coast city between Panama and Valparaiso. I strongly 
advise manufacturers to give it more attention. Head- 
quarters should be located here, as from Lima one can 
reach the other trading centers within two or three days' 
journey. On the other hand, Lima itself can never be 
either a railroad center or a seaport, so that the ulti- 
mate great city of Peru may be located elsewhere. 



136 THE FUTURE OF SOUTH AMERICA 

The people of Lima, and of all Peru as well, are not 
progressive as we understand the term. The railroads 
and mines are in the hands of men from the United 
States; Germans and English do the shipping; other 
foreigners do the trading. The government and the 
people are the weakest features of the country. The 
Peruvians frankly admit that they have little initiative 
and are satisfied to let well enough alone. Free speech 
is still questioned. While I was in Peru a mass 
meeting was held in Arequipa protesting against the 
very large increase in taxes. So many people attended 
the meeting that the police tried to disperse them, and 
within a few minutes several men were killed. 

I had a letter of introduction to the minister of for- 
eign affairs, but when I called, I found that he had 
been shot in a duel the week before. 

Peru needs a heavy immigration from the cold and 
sturdy countries of Europe. 

I made a special trip to the mountains to see the 
native Indians living and working. Unlike the natives 
of the West Indies, the Indians of Peru cannot live on 
wild cocoanuts, bananas, and breadfruit. Such 
things do not grow wild in central and western Peru. 
They are cultivated on irrigated land. Hence most 
of these Peruvian Indians are peons, and work for 
others at about fifteen cents per day. These Indians 
live in wretched huts made of bamboo covered with 
adobe, with a hole in the center of the roof so that 
the smoke may escape. Many of them live in a sort 
of cave and in dugouts in the side of cliffs. In their 
little villages I saw mules actually treading out the 
grain with their hoofs, as in old Bible times. I saw 
the caravans coming in from the desert as they are 



PERU 137 

seen in northern Africa. What made the greatest 
impression on me was this: In front of each tiny 
adobe hut is a round corral, twenty feet in diameter 
and bordered with a few stones loosely laid around so 
as to make a rough wall about a foot high. These are 
to keep the stock in at night. The animals have so 
little life that they will not step over these few 
stones. 

The chief beast of burden in the mountains is the 
llama, an animal with a long neck and a small head, 
which looks like a big sheep. Although these animals 
absolutely refuse to carry more than a small load, they 
need little attention. They feed and take care of 
themselves. 

Riding across the arid desert, I met several caravans 
bringing alpaca wool from the mountains to the mar- 
kets. This wool is very strong, and when I asked a mer- 
chant the reason he explained: 

" Ah, the alpaca live in the high lands, and are obliged 
to fight for every bit of green which they eat, so that 
life is one continuous struggle. The ordinary sheep are 
led by the shepherd from one green pasture to another. 
The result is that the alpaca wool is strong and long; 
while ordinary wool is inferior and short." 

Strange to say, this same principle applies to the 
people of Peru as well as to the sheep. The brightest 
and worthiest natives are found in the highest re- 
gions, where everything must be raised by irrigation. 
The lowest and poorest Indians are found in the most 
fertile regions of the low lands. 

Mollendo, the next port south from Callao, is Peru's 
best gateway, but as a town it is not attractive. It 
owes its importance to being the port of Arequipa, and 



138 THE FUTURE OF SOUTH AMERICA 

the country extending to Cuzco, La Paz, and the 
interior. From Mollendo starts the railroad which 
traverses the one hundred and seven miles to the in- 
land city of Arequipa, and which in that distance climbs 
to a height of over seven thousand feet above sea level. 
Mollendo itself is built on a rock one hundred feet above 
the sea, and the surf is sufficient to make landing diffi- 
cult and sometimes dangerous. Passengers are hoisted 
ashore by steam cranes. Mollendo is a dreary spot, bar- 
ren and forlorn, as there is no vegetation, and nothing 
to render less cheerless the sandy and rocky streets 
with their rough huts of matched boards and sheet iron. 
There is hardly a wheeled vehicle in town, and all the 
water comes a distance of eighty-five miles. All the 
business is that connected with the railway and the 
shipping. 

The railroad runs from Mollendo some miles south 
along the shore, then turns and begins its zigzag climb 
into the mountains. In two hours it reaches a height 
of four thousand feet, at the station of Cachendo, which 
is on an extensive table-land of sand and gravel, abso- 
lutely barren. Crossing this and still ascending, one 
finally arrives at Arequipa, the second city of Peru, 
resting on a gentle slope on both sides of the river Chile. 
It was a rest-house station, in the time of the Incas, for 
the swift Indian runners, who are said to have traveled 
to the shore and carried up fresh fish for the monarch at 
Cuzco. Pizarro chose this spot for a Spanish stronghold 
between the interior table-land and the coast, and it 
became the seat of a bishop. Here have been built 
many churches and convents, and here there still lingers 
an air of antiquity and a sort of Oriental quality which 
is surprising in a region so far from the East. 



PERU 139 

There are far more churches in Arequipa than seem 
needed in a city of its size. People are apparently at- 
tending some service most of the time, and one sees 
many priests in the streets. Some of the churches show 
decoration and ornamentation of varying degrees of 
excellency, and the cathedral contains a picture attrib- 
uted to Van Dyck. 

The houses are only one story in height, for another 
earthquake is expected at any time; but they are 
mostly built of stone with vaulted roofs. This light- 
colored, porous, volcanic stone is given a fine finish 
when used for the walls of houses, and richly carved on 
the fronts of churches. The buildings are painted in 
delicate shades of blue, pink, green, or cream. The 
walls here are even thicker than in Lima, and it is esti- 
mated that one third the area of Arequipa is occupied 
by foundation and partition walls. The streets are 
narrow but straight, and roughly paved with cobble- 
stones of lava. A stream of water from the river runs 
down the side of most of them, and this also serves as 
an open sewer. There are few wheeled vehicles, but 
everybody rides either on horse or donkey. 

Though this city is a thousand feet higher than the 
top of Mt. Washington, yet, as it is in the torrid 
zone, the sun has great power. The dry desert air is 
thin but invigorating, and I like the climate very much. 
No artificial heat is used, though the mercury may 
drop to 36° or lower in the night. In the daytime, 
though it is warm, it never becomes as hot in Arequipa 
as in Philadelphia or St. Louis. As in other tropical 
cities, no one works in the middle of the day, nor 
indeed very much at any other time, except perhaps 
a few foreigners in offices or Indians in gardens. If 



140 THE FUTURE OF SOUTH AMERICA 

more work were done in the line of cleaning up and 
watering the city, beautifying it by planting trees 
and shrubs which would relieve the intense glare of 
the sun, Arequipa would not be a bad place in which 
to live. 

The clearness of the air makes it especially attractive 
to astronomers, as here the stars shine with very great 
brilliancy. Harvard University maintains two meteoro- 
logical observatories on El Misti, one of the surrounding 
mountains, the highest being near the top, at an eleva- 
tion of nineteen thousand two hundred feet. There are 
also meteorological and astronomical observatories at 
Arequipa. This El Misti is a volcano, with two great 
craters, the larger a half mile across. It has not had 
an eruption for many years, but vapor and smoke al- 
most constantly rise from it in varying quantities. 

There are cotton and woolen mills, tobacco factories, 
a foundry, a brewery, and car shops in Arequipa; but 
its best assets are the old buildings and architectural 
specimens. It is a quaint city with an Eastern touch 
of color. On the streets are seen many Indians dressed 
in gayly colored blankets, and, so far as my observation 
goes, they have an honest and happy disposition. With 
better hotels, Arequipa, Cuzco, and La Paz would be- 
come popular centers for tourists. 

The resources of Peru, with its three parallel moun- 
tain ranges, its great streams in the eastern part, and its 
narrow desert coast on the west, may be divided into 
four classes: 

First, rich gold, silver, copper, and iron ores in the 
mountainous districts. The river valleys also are rich 
in placer gold, whose quantity and value are attested 
by the fact that they were worked for centuries, and 




Copyright by Underwood & Underwood 

SACKS OF ORE ON THE RAILWAY PLATFORM, CERRO DE PASCO, PERU, 
AND THE MINE FROM WHICH IT CAME 



PERU 141 

were abandoned in almost every case only on account of 
lack of water or transportation facilities. 

Second in importance are the fertile valley lands, 
capable of producing exceptionally fine sugar and cotton. 
There are also large tracts bearing coffee, cacao, coca, 
and cinchona trees, and areas containing vineyards 
known to have been cultivated since early in the six- 
teenth century. Beyond these river lands are immense 
areas with grazing plains which feed the world's famous 
alpaca flocks, and which need only irrigation to be- 
come rich and fertile. 

Third, the great forests of the eastern part abound in 
rubber and other valuable trees. This section has 
direct water routes, by the great rivers flowing to the 
east, to the markets of Brazil. 

Fourth, the territory rich in petroleum and the great 
deposits of guano. 

Mining should be given the leading place among 
Peru's resources. Copper occupies first position, fol- 
lowed by silver, crude petroleum, gold, coal, and lead. 
The richest mining region now is that included be- 
tween the two great branches of the Andean Cordillera. 
In this region there are gold mines with deposits of coal 
so near as to assist in the gold operations. The Depart- 
ment of Junin, in which is the celebrated Cerro de Pasco 
mining district, stands at the head of the producing 
sections, containing deposits of all the minerals men- 
tioned, and also vanadium, recently discovered. 

Peru's coal deposits are both bituminous and anthra- 
cite. The anthracite fields lie in the north, while the 
bituminous fields are widespread. The annual output 
is about three hundred thousand tons. The country 
produces the oil which is used on the Peruvian railways. 



142 THE FUTURE OF SOUTH AMERICA 

The oil is also exported, some to Chile for fuel in the ni- 
trate works, some to California, and some to Japan. 

The Cerro de Pasco Mining Company averages an- 
nually about forty-five million pounds of copper bars, 
containing also gold and silver. The company has a 
hydro-electric plant developing ten thousand horse 
power, costing about two million dollars, the machin- 
ery for which was contracted for in the United States. 

A leading authority on Peru writes as follows regard- 
ing the progress of mining industries of that country : 

The increase of the output of copper, coal, silver, gold, 
petroleum, lead, salt, borax, vanadium, and the like, proves 
to what an extent the mining industries are nourishing in 
Peru. The number of mining claims denounced in the 
country reaches to something like twenty-three thousand. 
Hydraulic mining is attracting great attention and some good 
results are expected from the works in operation. The ferro- 
vanadium from the Ragra Mine in Peru is being worked by the 
American Vanadium Company in Pittsburg. This is at 
present the greatest discovered deposit of vanadium in the 
world. Through the very up-to-date methods being used at 
the vanadium works in Bridgeville, belonging to the Ameri- 
can Vanadium Company, the use of vanadium steel in the 
engineering industries has very largely increased, much to the 
satisfaction of the manufacturers of articles in the composi- 
tion of which strength and elasticity are essentials to their 
lasting qualities. 

Tungsten, bismuth, mercury, molybdenum, and antimony 
are likewise being mined in Peru. Chlorides, salts, borates, 
nitrates, limes, natural cements, marbles, granites, and sev- 
eral kinds of volcanic stones are everywhere to be found 
throughout the length and breadth of Peru. Recently a re- 
port was current that an emerald mine had been located in 
the vicinity of Cuzco; while pearls have been found along 
the coast of Sechura. 

Iron ores are known to exist in regions where coal is plen- 
tiful, and as the western and eastern slopes of the Andes 



PERU 143 

abound in waterfalls there seems to be no end of water avail- 
able for power, and consequently it is not out of the way to 
predict that within a few years Peru will become one of the 
industrial nations of the American continent. 

Some one has reckoned that since seven thousand 
million dollars' worth of silver has been mined in Peru 
since its discovery, this sum would make enough silver 
dollars to circle the earth nearly seven times if the coins 
were laid edge to edge around the globe. When we 
realize that lack of transportation facilities and inade- 
quate means for modern mining have hampered the ob- 
tainment of the silver and other metals so abundant in 
the mountain regions of Peru, we may well look for- 
ward to a time when, with the modern improvements 
and increased capital, Peru may lead the world in 
mineral production — with the possible exception of 
the United States. 

If, as has been said, " copper is the metal of the 
future," Peru may expect great wealth, especially 
from her copper mines. Electricity and copper are so 
closely connected that one can hardly think of one 
without the other, and the constant use and improve- 
ment of electrical machines of all kinds demand large 
quantities of the red metal. Indeed, it would be 
difficult to enumerate all the uses to which copper is 
put in the sciences and arts. 

It has been said that the two chief products of the 
northwest coast of South America are minerals and 
revolutions! Certainly minerals are abundant, but 
let us hope that the soil is becoming less fertile for 
revolutions. Foreign capital has heretofore been useful, 
without doubt, in working both of these products, but 
there are also many other opportunities for the foreigner. 



144 THE FUTURE OF SOUTH AMERICA 

I am convinced that Peru's future lies in irrigation. 
Unquestionably there are great undeveloped mines of 
gold, silver, and copper, but mining does not perma- 
nently build up a country. What astonishes me is to 
see men search the mountains of Peru for metals, while 
great rivers of water are running through rich, unculti- 
vated prairies to the sea. If these rivers were dammed, 
and the water raised to flow over the land, Peru would 
become a veritable Garden of Eden. To see these great 
stretches of desert causes one to think that they are 
incapable of development. This apparent sand is, 
however, very rich. It is necessary only to throw a 
seed into this parched yellow earth, pour on a little 
water each day or so, and soon will be grown the tallest 
stalk of corn any reader has ever seen. 

The wealth of the United States and most other 
nations comes from agriculture. Fortunately, agri- 
culture takes - second place in the industries of Peru, the 
chief crops being cotton, sugar, and rice. The sugar is 
largely exported to England and Chile for refining; 
why not to the United States? The cotton raised is 
the finest quality, commanding a price ten per cent, 
higher than other cotton. Peru is the sole source of the 
world's supply of gray "wool" cotton. So closely does 
its fiber resemble wool, that the entire product is util- 
ized in the manufacture of "woolen" goods, which are, 
in certain respects, improved by the admixture. The 
best grades are grown near Piura and shipped from 
Payta, the high quality being attributed to the pecu- 
liarities of soil and' climate for which this narrow belt 
of coast is noted. Five good crops may be obtained 
from one planting, the third year representing the 
maximum yield. Irrigation is now necessary for all 



PERU 145 

crops in western and central Peru ; but this fact often 
makes it possible to raise crops at any time. In Piura 
there is already a canal twenty-two miles long. 

There are well-equipped cotton factories in Lima, 
Arequipa, and lea. As every one knows, the by-prod- 
ucts of cotton are useful, and increase its value at least 
one fourth. Although it is being more extensively cul- 
tivated every year, yet so far the demand continues to 
exceed the supply. Tobacco, coffee, wheat, corn, vege- 
tables, and garden stuffs are also raised. 

The cultivation of coca, from which cocaine is ob- 
tained, is carried on extensively in certain sections, 
especially in the Cuzco Valley , there being about twenty- 
five factories devoted to this business. The Indian is 
very fond of chewing the leaves of this plant for the 
pleasant stimulation which it produces. When he mas- 
ticates it with a little clay, he finds in it a support which 
enables him to endure fatigue without food for long 
periods. Perhaps it is especially suitable for those who 
are obliged to work at high altitudes. 

The Oroya Railroad, from Lima up, and then up, one 
of the most wonderful engineering feats in the world, 
is the work of an American, and, as one traveler has it, 
is "the marvel feat of the adventurous Meiggs, true 
son of Uncle Sam, the last word of all engineering and 
its most daring expression." He also built the road 
from Mollendo to Arequipa and on. His fame is 
perpetuated by a mountain near the Oroya road, rechris- 
tened Mt. Meiggs in his honor. This peak is two thou- 
sand feet above the highest part of the road, which 
itself runs along this Andean roof at a height of 15,665 
feet. Other railroads are in process of construction, 
and many more are needed in Peru. 



146 THE FUTURE OF SOUTH AMERICA 

At present, the most promising of the Peruvian rail- 
way projects are the extension of the line from Chim- 
bote and the proposed line from Payta to a port on the 
Maranon River, which is designed to run from Piura, 
by Sullana, Tambo, Salitral, Porculla (the highest point 
of sixty-six hundred feet) , to a point near Limon on the 
Maranon. The total length of the railway will not be 
much more than four hundred miles, and the terminus 
of the line is within easy reach of Iquitos on the Ama- 
zon. A less important project is a line to connect 
Oroya, or Cerro de Pasco, with Iparia, a port on the 
Ucayali. This would carry some of the minerals as 
well as the products of the Montana down the Amazon 
route. Yet a third railway is proposed from Checcacupe 
on the Arequipa Railway to a port on the Madre de 
Dios River. It will be years before all these projected 
lines are finished, and each one will be a rival to the 
Panama Canal. The sugar and cotton of the coast will 
still be shipped from Callao by Panama, but almost all 
the other merchandise of Peru will go by the river routes. 
The more the resources and communications of Peru 
are developed, the greater will be the wealth of Lima 
and the more civilized districts, which will always de- 
pend on the canal. 

One of the crying needs in South America is good 
hotels. The people who travel on that continent come 
back complaining of the hotel accommodations, espe- 
cially on the west coast. The railways should build 
hotels here, as has the Santa Fe in the United States. 

Peru acknowledges that she alone has done about 
all she can afford to do in the way of railways, irriga- 
tion, and other development. She now needs more 
capital, and makes an appeal for it. She believes that 



PERU 147 

if the foreigner will come in and help develop her land 
and increase her productiveness, it will not only bring 
him great profits, but will give her more money with 
which to buy goods from this country. Peru argues 
that much of our development in railroads and other 
great improvements have been brought about through 
foreign capital, and that now is our chance to help in 
the same way a small sister republic. Every impor- 
tant Peruvian whom I met appealed to me to tell my 
readers to visit and study Peru. 

With the exception of Ecuador, Peru gains more than 
any other South American republic, as far as the short- 
ening of the distance is concerned, from the Panama 
Canal. The distance saved between Callao and New 
York is 6,250 miles, while 4,043 miles are saved be- 
tween Callao and Liverpool. Not only that, but of 
course the old route to New York by the Strait of 
Magellan cost more in wages and coal — nearly three 
times as much, in the case of a trip to New York, and 
twice as much to Liverpool. It seems therefore rea- 
sonable to suppose that much of the oversea trade to 
Peru will henceforth go through the canal. 

It must, however, be remembered that a part of Peru, 
the Montana, east of the mountains, which is believed 
by many to be one of Peru's greatest assets, has no 
bearing on the canal. Iquitos, on the Amazon, is 
already the second port of the republic, having about a 
quarter the trade of Callao, and all the produce of east- 
ern Peru goes down the Amazon to the Atlantic. The 
Montana has been producing rubber amounting to 
about six million dollars annually, and also exports 
cacao, coffee, cocaine, ivory nuts, and many other 
tropical articles. With improved means of communica- 



148 THE FUTURE OF SOUTH AMERICA 

tion, this trade may be largely increased; but however 
large it may become, these products will not go over the 
barrier of the Andes, but down the incomparable water- 
ways which give Peru cheap and easy access to Europe. 

Great Britain now has more trade with Peru than 
has any other country. As she also has most of the 
shipping trade, she is naturally much interested in the 
shorter course. The United States will doubtless gain 
considerably more than Great Britain, but our ad- 
vantage is hardly likely to be sufficient for some time 
to transfer the carrying trade from the British flag. 
It is not probable, for instance, that the people of the 
United States will greatly increase their exports of 
textiles to Peru, merely because they can get the goods 
there more quickly. For some time to come, textiles 
can be purchased by the Peruvians more cheaply in 
Great Britain. 

Though most of the Peruvian railways are under 
British control, they get much of their material from 
Belgium and the United States. It would seem as if the 
United States ought to gain more than any other coun- 
try in the use of the canal, but this remains to be seen. 
We must be willing to study South American condi- 
tions, needs, and manners — as do the Germans — if 
we are really to get a strong foothold in Peru, or any 
other country of the continent. Peru is poor, and needs 
capital, labor, and initiative more than anything else. 
About fifty-seven per cent, of the population are In- 
dians who cannot spend much on foreign goods. Hence, 
unfortunately, the outlook for immediate profits on 
investments does not seem bright enough to encour- 
age foreign investors. With constant revolutions and 
boundary quarrels with her neighbors, Peru's future is 



PERU 149 

still rather unsettled. In short, Peru is to-day poor — 
yes, even land poor. Her progress will be slow, but 
this progress will be constant, and we should be pre- 
pared to have a part therein. 

Peru needs immigration of active and progressive peo- 
ple. The Spanish will never do more for South America 
than they have done for their own country, while In- 
dians are more or less the same throughout the world. 
To develop Peru, new blood is needed, and it must be 
brought into the country in such quantities as to change 
the customs and policy of the nation. This would re- 
sult in a much needed separation of Church and State, 
with a corresponding reformation in national govern- 
ment. The future of Peru is handicapped by the 
Church, which, being very influential in controlling the 
State, does not want to be " separated," while the law- 
yers and military class, who alternately control the 
elections, do not want to be " reformed." Hence cer- 
tain controlling interests, although friendly to capi- 
tal when it does not interfere with church or politics, 
are opposed to that immigration upon which the future 
of Peru depends. 

In considering business and investments in these 
South American countries, the condition of the govern- 
ment has a distinct bearing on the problem, and in this 
regard the people of the United States get very few 
real or complete facts. There are three reasons for this. 
The people of these countries are very hospitable and 
courteous. They are always gracious to all citizens of 
the United States who visit them, and after a man has 
been royally entertained, it is not easy for him to return 
home and say any unkind things about his hosts. 
Hence, as all men of importance are thus entertained, 



150 THE FUTURE OF SOUTH AMERICA 

it is very difficult to find many of authority who will 
give out the real truth to the public. Again, most of 
the information about South America which is distrib- 
uted in the United States comes from the Pan-American 
Union, a distinctly optimistic organization. Naturally, 
nothing about unstable political conditions can appear 
in their literature. Finally, the reports of the consuls 
are carefully blue-penciled in Washington, and little is 
published about revolutions, strikes, and failures. 

In Peru, revolutions still occur, although it must be 
admitted that the people seem little disturbed by them. 
According to the constitution, Peru has a president, 
one or more vice-presidents, a senate, and a house of 
representatives, supposed to be elected by direct pop- 
ular vote for a term of six years, and a judicial depart- 
ment. Every citizen over twenty-one who can read 
and write is entitled by law to vote, but my friends 
who have lived many years in Peru tell me that it 
is difficult to find many who bother to vote unless 
they are members of the army or employees of the 
government. Incidentally, the government owns and 
operates the postal and telegraph lines, excepting the 
railway telegraphs. 

Although President Oscar R. Benevides, whom I 
quote later, was undoubtedly a thoroughly good presi- 
dent, a delightful man, and friendly to the United States, 
yet it must be remembered that he was not elected by 
the people of Peru. This is nothing against him, as few 
presidents of the country have been elected by the 
masses; indeed, it may be in his favor. Personally I 
believe that revolutions have a legitimate economic 
function until real democracy is granted. This applies 
not only to South American countries, but to the world 



PERU 151 

as a whole. Only when the principles of democracy 
are applied to determining world policies will the eco- 
nomic causes of war be eliminated. 

Since the country obtained its freedom from Spain 
in 1824 the control of the government has swung back 
and forth between military and civil authority. The 
last legal president before my visit was said to have 
been Legere, whose term expired a few years ago. His 
successor was elected, but apparently he was not 
wanted by the interests which controlled the police 
and the army, so that sufficient police protection was 
not furnished on election day. This resulted in con- 
fusion in certain sections, and the election was de- 
clared illegal. Congress was then induced to elect 
Billinghurst president. 

After the lapse of a couple of years, certain interests 
decided that President Billinghurst had served long 
enough. There is no need of " recalls" in Peru. The 
courtly Colonel Benevides went to the capital with a 
body of men and asked Billinghurst to resign. As Mr. 
Billinghurst thought he was too young to die, he gra- 
ciously resigned. Although there were one or two 
vice-presidents, neither of them was apparently con- 
sidered as his successor. They wanted to live longer, 
so perhaps they resigned likewise. Colonel Benevides 
thereupon assumed the presidency, " because there 
was no one else to serve." This was only in Feb- 
ruary, 1914. 

Now I am not telling this story in disparagement of 
any president of Peru. I simply want readers to under- 
stand that there may be no such thing as a " Republic of 
Peru" as we understand the term. Liberty of govern- 
ment, liberty of speech, liberty of worship, as we know 



152 THE FUTURE OF SOUTH AMERICA 

such liberty, does not exist in Peru to-day. Votes are 
said to be bought and sold so that the men who con- 
trol the army and the police elect the congressmen 
and president. Whether this is so, I do not know. 

It is probably true that these revolutions do not 
disturb business any more than our presidential elec- 
tions in the United States, nor do they cost as much; 
but one certainly cannot tell when revolutions are 
coming as we can anticipate our elections. How- 
ever all this may be, Peru is an attractive country, 
with a lovable people. With the proper amount of 
irrigation and with suitable immigration, it should de- 
velop as rapidly as our Western States. The most 
prominent business men think so, and this is well 
illustrated by my interview with President Bene- 
vides, a well-groomed man who looks much like a 
New York banker. His suggestions are the more valu- 
able because they are addressed not only to manufac- 
turers and exporters, but to all people, showing them an 
opportunity to help in gaining South American trade. 
He said: 

"Urge the American people to insist that Spanish be 
taught in every high school in your land. I understand 
that in the commercial high schools of a few of your 
cities, the language is already taught; but this is not 
enough. It is unreasonable that there are hundreds 
of your schools teaching German to every one that is 
teaching Spanish. Not only does our mutual safety as 
Americans (for we, the citizens of Peru, are as much 
Americans as are the citizens of the United States) de- 
pend upon a union of the English and Spanish ra^es; 
but our mutual financial interests depend upon the 
same thing. 






PERU 153 

"The thoughts of the children of a nation are uncon- 
sciously focused on those nations whose language they 
are taught in the public schools. If you want your 
people to be interested in Germany and France, and to 
have no interest in South America, then continue to 
exclude the teaching of Spanish from your schools. 
But if you want the masses of your people to become 
interested in South America, then insist that Spanish 
shall be taught in every high school in your land. 

"For entrance into college, Spanish should be re- 
quired, with an option of either French or German. 
We are teaching our Peruvian children English and 
French. We are doing this not for the purpose of mak- 
ing salesmen of them, to send into the United States and 
elsewhere; but because we want to focus their attention 
on your country. We want our children to know more 
about our brothers in North America. We can best 
accomplish this by teaching them English. 

"We want your people to know more about us; not 
your big corporations and banks, but the masses in 
your country. In order to form closer relations between 
the two great continents of North and South America, 
there must be a closer relation between the great 
'common' people of the two continents." 

I then asked the President wherein the people of the 
United States had failed in their relations to South 
America. 

"What is it," said I, "that we have done in our deal- 
ings with South America which we should not have 
done, or left undone which we should have done?" 

To this question the President replied in substance 
as follows: 

"Considering our very friendly relations, you must 



154 THE FUTURE OF SOUTH AMERICA 

not ask me to refer to anything which you have done 
which I think you should not have done. I cannot 
criticise your people or your country. We Peruvians 
all value your kindness too highly. It would be very 
unbecoming in the President of Peru to criticise in any 
way even the manufacturers and business men of your 
country. 

"As to your sins of omission, I will venture to suggest 
that your textbooks and newspapers give too little 
space to South America. Remember that this southern 
continent is a tremendous affair from every point of 
view. Do your schools give sufficient attention to our 
importance? Do the geographies and histories studied 
by your people give enough space to Peru? We want the 
school children of the United States to know more about 
Peru and its great natural and other advantages. I do 
not criticise your people for not extending to us more 
credit, nor for not better adapting yourselves to our 
ways and needs, but I do think your people should give 
more time to visiting our country. Here you and 
others come only for a few days, hastily seeing only a 
few of our cities and talking with only a dozen or so of 
our people, and then you return to the United States 
to give lectures and write articles on Peru. 

" After you have been here and lived with us, so as 
to know us and our resources, if you then decide that 
Peru does not deserve credit and the like, very well. 
But I urge you not to judge us without real knowledge, 
acquired by personal study and observation when pos- 
sible, and otherwise by reliable textbooks and histo- 
ries. Thus my only criticism is that the great and 
powerful everyday people of your country have been 
taught too little about our land and its resources. My 



PERU 155 

earnest suggestion to the people of the United States is 
that they demand a greater knowledge of Latin America, 
which during the next fifty years is to have the same 
wonderful development which your great supposedly 
barren West has had during the past fifty years.' ' 

To check up this remark, I have referred to my daugh- 
ter's school geography. I find one hundred and thirty- 
five pages given to the United States, and only one to 
this great country of Peru, which is ten times as large 
as all New England ! The same book gives only two and 
a half pages to Brazil, which is larger than the entire 
United States! In comparing the space devoted to 
North and South America, I note one hundred and 
ninety-seven pages describing North America, and only 
twenty-two on South America. Not only this, but only 
two thirds as much space is given in this modern geog- 
raphy to the great and rapidly developing continent of 
South America, lying at our very door, as is given to 
Asia. In short, out of a total of about four hundred 
pages, only twenty-two are devoted to this great con- 
tinent, the development of which is so very important 
to our political, industrial, and social welfare. 

Now that we have spent four hundred million dollars 
in building the Panama Canal, let us adopt President 
Benevides' suggestion and insist that our children 
shall know more about Latin America, its history, 
customs, and opportunities. As he so tactfully said: 
" Although members of the same family, we are 
relatives who are very little acquainted with one 
another." 

I next asked the President to forecast the changes 
which are likely to take place in Peru during the next 
twenty-five years, and he replied that the development 



156 THE FUTURE OF SOUTH AMERICA 

of Peru would come about in three ways which he 
enumerated thus: 

(1) Railways; (2) mining; (3) irrigation. Con- 
cerning these, he said in substance: 

" Most of all, Peru needs railroads and means of trans- 
portation. As you know, we have two great ranges of 
mountains, one along the coast at the west, and the 
other toward the border of Brazil on the east. Between 
these two great mountain ranges is a rich and fertile 
plateau, about two hundred miles wide and eight hun- 
dred miles long. Here is the most perfect climate in the 
world, and only railroads are needed to develop the 
country. These mountain ranges absolutely lock up 
this fertile plateau, and only by railroads can they be 
pierced. This can perhaps best be done by building 
a railroad from Chimbote to Huarez, and my govern- 
ment will consider itself bound to secure the conclusion 
of this project. The wealthy Department of Ancachs 
will be transformed by this railroad. The same princi- 
ple applies to other projected lines. Of course, to make 
the railroads pay, their building must be accompanied 
by colonization; and now that the Panama Canal is 
open, we expect much immigration from Europe, and 
will judiciously encourage it. 

" Simultaneously with the building of railroads will 
come mining development of the great deposits of 
copper, gold, silver, and lead, as yet comparatively little 
worked. Petroleum has been discovered in good 
paying quantities, and geologists believe that large re- 
serves exist. Coal is abundant, a large bed of anthra- 
cite being known to lie in the hinterlands of Chimbote. 
These minerals and coal need only transportation to 
make them a source of great wealth. Tungsten ore, the 



PERU 157 

basis of the new incandescent lamps, which are rapidly 
becoming so popular, is also plentiful in Peru. Hence 
I expect that the immediate future of Peru will be 
largely mineral during the next twenty-five years. 

"The ultimate future of Peru, however, is coming 
from agricultural development. Peru has a possibility 
of forty-three million acres of good land that can pro- 
duce anything, of which only one million is now under 
irrigation." 

As I have already indicated, the territory of the re- 
public may be roughly divided into three great natural 
divisions: the low, semi-tropical plains and valleys 
along the Pacific coast; the temperate plateau and 
mountain region of the Andes; the region of the great 
forests, that is, the tropical valleys and slopes of the 
Eastern Andes, known as the Montana. 

The great national problems are the irrigation and 
colonization of the coast lands, the agricultural devel- 
opment and stocking of the upland plateaus, the min- 
ing development of the mineral-bearing ranges, and 
finally the clearing and settlement of the Montana. 
Thousands of square miles are already under irrigation. 
Peruvian mines have been famous for centuries; there 
are many large cattle ranges in the interior, and at least 
a score or more of flourishing settlements exist in the 
Montana, but all this is merely preliminary to the possi- 
bilities of accomplishment in this direction. 

Peru is destined to become the greatest sugar coun- 
try in the world. There are four reasons for this: 

1. Peruvian cane runs as high as forty tons an acre 
compared with an average of twenty-two tons in Cuba. 

2. Peruvian sugar has a very high percentage of 
saccharine. 



158 THE FUTURE OF SOUTH AMERICA 

3. Sugar can be started and ground in Peru e very- 
month in the year, thus enabling both the mills and the 
field labor to be constantly employed. 

4. There are no storms or other weather conditions 
which harm the crop. Although twelve hundred miles 
nearer the equator than is New Orleans, Lima is twenty 
degrees cooler in summer as well as twenty degrees 
warmer in winter. 

The future of Peru will witness the development of 
a great cotton-growing industry. There are four rea- 
sons also for this: 

1. Many Peruvians are growing cotton at from 600 
to 900 pounds an acre, with a maximum of 1,384 
pounds. 

2. The Peruvian average production is 484 pounds 
an acre, compared with the Egyptian average of 390, 
the United States average of 308, and an Indian average 
of 70. 

3. The Peruvian cotton has a very long staple, 
which is greatly sought after by all buyers. 

4. The cost of production in Peru is two or three 
cents per pound less than in the United States. 

In addition to sugar and cotton, much is being done 
in the development of coffee plantations and vineyards, 
and the raising of cacao, coca, tea, rice, olives, fruits, 
tobacco, and various vegetables of the temperate zone. 
Among these may be mentioned potatoes (some claim 
that Peru is the home of the potato), beans (we all 
have heard of Lima beans); barley, wheat, and alfalfa. 

I was very much interested when in Peru to see corn 
growing at so many different stages in the same field. 
Apparently there are plantings every month or so. 
Within a small area would be found corn in five stages, 



PERU 159 

viz., two inches high, a foot high, just beginning to 
tassel, just ready to pick, and finally, dry stalks being 
gathered for the barn. Of course irrigation was neces- 
sary for this, as it is for securing any good results in 
certain parts of Peru. 

For water, Peru must depend upon the bountiful 
rivers which flow from the snows of the Andes. Neither 
rubbers nor a raincoat can be purchased in Lima. In 
fact, a week of rain such as we sometimes see in the 
United States would destroy whole villages! As many 
of the houses are made of adobe, the rain would melt 
them, and the mud would run away. Although so de- 
pendent upon irrigation, Peru blossoms wonderfully 
with its aid. The most valuable lands in the world to- 
day are not those having plenty of rain, without sun- 
shine ; but those having the maximum of sunshine and 
the maximum of irrigation. 

One should not go to Peru without capital, as it takes 
more money to get started in Peru than perhaps in 
some of the other South American countries. Mining 
always takes money; irrigation is likewise expensive 
in the beginning, and agriculture in Peru must always 
be an irrigation proposition. Again, mining and irri- 
gation lands must be purchased with real cash. They 
cannot be taken up as " homesteads," or bought from 
railroads at a few dollars an acre. Hence the future of 
Peru depends upon immigration that can command 
capital. Let those of us who love Peru do our best 
to secure for it such people. 



CHAPTER XI 
Bolivia 

Imagine a country as large as the whole of Germany 
and Austria, cut up by great mountain ranges, and hav- 
ing only a few miles of railroad. Imagine this country 
without a seacoast — the third largest country in South 
America — to have a population equal to that of Berlin 
and its suburbs scattered over its immense area. Im- 
agine these people to be savages — there are but two 
hundred thousand white people, and these mostly in the 
cities — or semi-civilized Indians, most of whom have 
never seen a train of cars or even a four-wheeled cart, 
speaking several different languages. Imagine these 
people, without education or means of communica- 
tion, trying to have a republic. 

Yet Bolivia has a government very much like our own, 
with a congress, judiciary, and a president. The in- 
habitants are supposed to have equal suffrage and be a 
free people. It is needless to say, however, that a very 
small minority control the government of Bolivia. 
The future of real republican government in Bolivia 
depends upon more railroads, schools, and other means 
of making the people more homogeneous. 

Bolivia is an artificial creation without natural 
boundaries or physical characteristics distinctive from 
those of its neighbors. When this territory was freed 
from the Spaniards and named for the great " Liber- 
ator," Simon Bolivar, it had a seacoast, but this was 



BOLIVIA 161 

lost later in an unfortunate war with Chile. Thus all 
the commerce with Bolivia has first to pass through an- 
other country, which puts the Bolivians in an unfortu- 
nate commercial position. There are now three ways 
of getting to Bolivia. One may go from the Peruvian 
port of Mollendo, a little mining town of which we 
have many duplicates in Nevada, Montana, and Ari- 
zona. From here a railroad winds up to Puno on Lake 
Titicaca, the highest large lake in the world, a distance 
of three hundred and thirty miles. Here the goods are 
transferred to small lake steamers and carried to the 
south end of the lake. Again they must be unloaded 
and placed on the railroad and hauled the remaining 
sixty miles to La Paz, the largest city of Bolivia. The 
city is a little more than twelve thousand feet above 
sea level, and is only three hundred miles from Mol- 
lendo, but the journey takes about two days. 

Or one may go to Bolivia from the Chilean port of 
Arica, the most direct and most recently opened way. 
The city of Oruro, from which the route takes its name, 
is twelve thousand feet above the sea, but the road goes 
higher. The grades on this road are very steep, and 
cogwheels have to be used for part of the way. Oxygen 
compartments for those who have difficulty with the 
altitude are provided in some of the cars. The third 
way to La Paz is from Antofagasta, and is considered 
by many the best way, although the distance is seven 
hundred and thirty miles. Whatever route the traveler 
takes, a climb of about fourteen thousand feet above 
sea level is necessary in order to cross the great Andes 
that stretch like a fence down the coast of South 
America. 

Like other South American countries, the character 



162 THE FUTURE OF SOUTH AMERICA 

and climate of Bolivia differ greatly in different sec- 
tions. The western portion is very much like central 
Peru, and has a fine clear climate. It has the appearance 
of a barren desert until water is turned on, when it be- 
comes a veritable garden. The beauty of these occa- 
sional cultivated sections of the desert is broken now 
and then by the sight of rough mining towns; and mines 
are the principal reason for the existence of life and 
business in Bolivia. The southeastern portion of the 
republic is a plateau gradually sinking to the prairies 
of Argentina, Paraguay, and Brazil. This plateau is 
little used to-day, but very likely is possible of much 
development. The northeastern portion is heavily 
wooded, with a hot and wet climate, such as one finds 
in the rubber jungles of Brazil. This means a change 
from extreme cold and dryness in the western section 
to extreme heat and humidity in the northeastern sec- 
tion, while the southeastern section has a temperate 
climate. 

Bolivia is about eight times the size of New England, 
and its resources are quite as great as those of Vene- 
zuela, Ecuador, Colombia, or Peru. The population is 
only about two million, or little over three to the square 
mile. Most of the people are Indians or " dark " whites. 

La Paz is the largest city, and is the highest in alti- 
tude of any city in the world. It lies in a canon eleven 
hundred feet below the level of the table-land. For 
one who can stand the altitude, it is an interesting 
place. It is probably the most spectacular and original 
city in the world to-day, rivaling Cairo, Bombay, and 
even Pekin. Here one sees a beautiful city as clean as 
many northern cities, crowded with Indians who vie 
with one another in wearing gay colors. Llamas are 



BOLIVIA 163 

seen passing up and down the streets as one sees auto- 
mobiles in other towns; the wild vicunas are heard in 
the outskirts, while surrounding the city are vast, snow- 
capped mountains about twenty thousand feet high. 
La Paz is a wonderful sight, and if it remains as it is at 
present, our children will be going up there instead of 
up the Nile. The climate is fine, although the tempera- 
ture averages only fifty degrees. Coal is very high, 
costing from thirty to fifty dollars a ton, so that fires 
are a luxury. I believe that the future of La Paz is 
very bright if it is properly advertised and keeps its 
quaint and artistic coloring. 

Most of the wealth of the country is now mineral, 
although there are some exports of coffee and coca, from 
which cocaine is made. The western portion of the 
country is rich in copper and silver, while the southern 
and eastern portions are rich in silver, gold, and tin. 
One third of the world's supply of tin comes from this 
country. Borax, nitrates, and various other chemicals 
are also found. 

Any reader wishing to buy a mine cheap should go to 
La Paz, where mines can be purchased for a song. 
Moreover, these are not fake mines; they contain real 
deposits of valuable metals. They are cheap because 
they are inaccessible. Machinery is necessary to work 
them, and to get it over these mountains and through 
the deep canons is almost impossible, certainly imprac- 
ticable. However, great wealth is eventually coming 
from these mines, which can now be had for the asking. 

There is no manufacturing in the country, so that 
the imports cover everything in the line of textiles and 
machinery. So far the United States has done less than 
one tenth of the business there. 



164 THE FUTURE OF SOUTH AMERICA 

Although many disagree with me, I believe that 
Bolivia has vast agricultural possibilities, when the 
world needs her pastures. Agriculture must be car- 
ried on, however, by irrigation and along scientific lines. 
At the present time, the farmers are raising corn, maize, 
beans, and similar crops, for local consumption. The 
chief agricultural exports are hides and wool. 

In addition to La Paz, there are several other cities of 
importance as trade centers for isolated districts. 
Oruro, the center of the tin mining region, has twenty 
thousand inhabitants. Potosi, famous for its mountain 
of solid silver, has been given a new life by the construc- 
tion of a railroad, and now also has twenty thousand 
inhabitants. Sucre, still in law the legal capital, has 
a good deal of wealth, and is an attractive city for the 
tourist. Cochabamba is the center of a great agricul- 
tural district, and Santa Cruz is the most important 
town in the great tropical agricultural region. 

It may be fifty years before Bolivia becomes an agri- 
cultural country; it may be twenty years before its 
mining possibilities are fully realized, but its scenic and 
historical advantages should be capitalized at once. 
Instead of taking people to Egypt, they should be 
taken to Bolivia and the land of the Incas. The future 
of Bolivia lies in making itself known, and I can see no 
better way than for the government to build fine hotels 
and to encourage tourist travel. 



CHAPTER XII 
Chile 

After leaving Mollendo, Peru, and sailing south two 
nights and a day, the next port reached is Arica, in the 
northern part of Chile. In contrast with the desert 
coast, Arica is surrounded by green trees and other ver- 
dure, which has caused one traveler to call this little 
port the " Emerald Gem of the West Coast." Here 
there is an open harbor, protected on one side by El 
Morro, 855 feet high. The passengers are landed on a 
stage from open boats, instead of being hoisted up in 
chairs, as at Mollendo. 

The constant quarrels which have usually resulted 
in Chile's getting more and more of the territory of 
Peru, and therefore the great wealth of the nitrate 
lands, constitute a large part of the history of this re- 
gion, where most of the fighting has taken place. As a 
matter of fact, the boundary line is not absolutely 
settled yet. 

As in the other coast cities, the houses of Arica are 
of one story, and painted in various colors. A highway 
constructed by the Incas to Bolivia is still in use, and 
ore is brought down over it on llamas, although a rail- 
road is now completed to La Paz and beyond. Freight 
rates are necessarily high on account of the heavy 
grades. 

At Arica, if one is interested in antiquities of this 
kind, may be seen the prehistoric cemetery which con- 



166 THE FUTURE OF SOUTH AMERICA 

tains preserved mummies, reputed to be the equal of 
those in Egypt. These mummies have translucent 
eyes, with a rich amber tint, which scientists say have 
been taken from cuttlefish and substituted for those 
of the dead. 

Chile is the most curiously shaped country in the 
world. If Massachusetts were to be extended westward 
through the Central States to the Pacific Ocean, it 
would be about one hundred and twenty-five miles wide 
and nearly three thousand miles long. Imagine this 
belt of land turned on end, so that it would lie north and 
south instead of east and west, and you will then have 
an idea of how large and how peculiar is the shape of 
Chile. It runs up and down the west coast of South 
America, mostly in the temperate zone, just as our 
own west coast borders on the Pacific Ocean, and if the 
southern end of Chile were placed at the southern end 
of Mexico, its northern line would reach Canada. 
It has thirty-eight times the area of Massachusetts, 
but its population is considerably less. 

Chile is divided longitudinally by the Coast Range 
in the west and the Andes in the east, and from San- 
tiago one can see both ranges. According to zones, the 
northern part to the twenty-ninth parallel is tropical 
and bare, though rich in minerals. The central part to 
the thirty-eighth parallel is temperate and includes fer- 
tile plains and the largest towns and commercial cities. 
The southern section, extending to the tip of the conti- 
nent, is thickly wooded and subject to heavy rainfall, 
but little developed, and with a sparse population. 
The central part is the real Chile. 

It is obvious, therefore, that one can obtain at the 
same time any kind of climate in Chile. The northern 






CHILE 167 

part is always hot and dry. The mining zone has typi- 
cal Colorado weather, with sunny days and cold nights. 
The agricultural zone has splendid temperate weather 
all the year round, very much like the weather of south- 
ern California, but with a rainy season from June to 
September. The southern zone is a good deal like 
parts of Canada, with much rain, a short, beautiful 
summer, and a long, bleak winter. The winters of 
Patagonia, however, are not so cold as one would think, 
owing to the great quantity of surrounding water and 
the very little land. On the same day one can pick roses 
in the valleys surrounding Santiago and snowshoe in the 
Andes east of the city. These varieties of climate should 
some day make Chile popular with tourists, who are al- 
ready calling it the " Switzerland of South America." 

These different climates should also become valuable 
to Chile in future years for agricultural and industrial 
purposes. Not only will she be able to mine and raise 
the raw materials necessary for manufacturing almost 
every kind of goods, but her climate is suitable for the 
operation of factories and mills. The nitrate mines in 
the northern part of Chile are now looked upon as 
Chile's greatest resources, for about seventy per cent, 
of her exports are nitrates. Unfortunately, this rock 
is not used in Chile for manufacturing purposes. The 
mining and shipping of it is all there is to the industry. 
Chile's great mineral resources of copper, iron, and coal 
are yet undeveloped, although the largest copper mine 
in the world is being developed in the province of Chu- 
quicamata. The Chileans are especially interested in 
their iron deposits, believing that the time will soon 
come when blast furnaces and rolling mills will be 
erected. They also have the same hope concerning 



168 THE FUTURE OF SOUTH AMERICA 

their deposits of other minerals and their timbers. 
The Chileans are not so much interested in the expor- 
tation of these raw materials to other lands as they are 
in their utilization in Chile. 

This is something about Chile which the people of the 
United States have to learn. We are apt to think that 
South America exists simply to buy goods from us. 
We must remember that some of the people of South 
America are as keen for developing their own indus- 
tries as we are. This especially applies to the Chileans, 
and is the reason for their slogan: "Chile for the 
Chileans. " 

After the founding of Lima, Chile was invaded by the 
Spanish, grants of land being given by the king to 
Pizarro and others. These naturally wanted to gain 
more territory. Encouraged by the reports given out 
by the Incas (doubtless in order to get the Spanish out 
of their country) that the regions to the south were yet 
richer in gold and silver, they pushed southward, suf- 
fering almost incredible hardships. Those going east 
met with no success, but Valdivia, going along the 
shore, reached Arica. There he made rude vessels, and 
proceeded by water, and in 1541 founded the city of 
Santiago. • Continuing south, he made other settle- 
ments, but was later treacherously captured and put to 
death by the Indians. For two hundred and fifty years 
the strife went on for the subjugation of the Indians. 
Finally, when the Chileans rose against Spain, the In- 
dians joined them against their common enemy, and a 
sort of friendliness was established which still exists. 

The revolutionary movement for independence which 
swept the American continent at the beginning of the 
nineteenth century found an echo in Chile in the year 



CHILE 169 

1810. On the eighteenth of September of that year, 
Chile proclaimed her independence, but it was only 
after a struggle of eight years with Spain that Chile 
attained her desire. An independent government was 
formed, but there then arose a succession of revolu- 
tions and dictators, followed by an era of anarchy. 
At last this reign of license was checked by Diego Por- 
tales, a man of " superior powers," who formulated the 
"Constitution of 1833" and organized the Chilean 
nation along conservative lines. Although assassinated 
in his prime, yet he was followed by some fairly good 
men who carried out his plans. The term for the presi- 
dent was then ten years, and each served the full 
period, while the rest of South America was in the 
throes of continual revolution. 

The Constitution, established in 1833, has remained 
unaltered, with but slight changes, until the present 
time. The principal theoretical characteristics of this 
Constitution are as follows : 

1. The Government of Chile is a "popular and represen- 
tative body." 

2. The Republic of Chile is indivisible, i. e., not a feder- 
ation. 

3. The governing power resides "in the people" who con- 
fide this power to the authorities established by the present 
Constitution. 

4. All people are equal before the law. 

5. Personal liberty and inviolability of property are as- 
sured. 

6. There is liberty to reside in any part of the country, pro- 
vided the police regulations are respected. No one may be 
arrested without a warrant, or imprisoned or deported with- 
out judicial proceedings. 

7. The right to hold meetings without prior permission is 
provided. 



170 THE FUTURE OF SOUTH AMERICA 

8. The right to publish any opinion through the medium 
of the press is provided. 

9. Slavery in any form whatsoever is strictly prohibited. 

10. The inviolability of the home is guaranteed by the 
Constitution to all residents in Chile, as also the inviolability 
of letters and documents. 

Gradually during the term of Montt, 1851-1861, 
liberal ideas began to develop, and in 1886 Balmaceda 
became the first democratic President of Chile. As this 
man had been influential in Chile's very successful war 
with Peru, he was given the nitrate fruits of that war to 
spend. This wealth Balmaceda spent with great free- 
dom. He built schools, colleges, railways, breakwaters, 
ironclads, and great public buildings. Chile, which up 
to this time had been a very conservative and frugal 
nation, at once blossomed out into a dazzling — al- 
though tiny — empire. But this great democrat 
transformed Chile morally as well as materially. As 
in the case of most families, the character of the people 
began to decline as their wealth increased. Although 
we are perhaps perfectly willing to be harmed in this 
way, yet history is continually proving that wealth 
takes away the life and energy of a people. Wealth per- 
mits the erection of monuments, but does not provide 
health and happiness. 

In 1891 Chile was rent by a most peculiar revolu- 
tion. Congress, the bankers, and the merchants re- 
volted against President Balmaceda and his democratic 
ideas. They had become intoxicated by their wealth, 
and the President had become intoxicated by his demo- 
cratic ideas. These he put forward at too rapid a pace. 
For a short while, bloody and bitter conflict lasted, but 
Congress was triumphant at last. 



CHILE 171 

It was during this revolution that the United States 
became involved with Chile in such a way that a war 
was narrowly averted. The people of Chile were bit- 
terly aroused against the United States in the belief 
that we had played a considerable, though secret, part 
in the conflict. Sailors from our fleet were attacked in 
Valparaiso, and two were killed. The trouble was 
settled by the payment by Chile of seventy-five thou- 
sand dollars, but the feeling against North Americans 
was very intense there for years. From that day the 
presidents of Chile have been largely figureheads and 
not powerful dictators, as are the presidents of Peru and 
most other South American countries. The real gov- 
ernment of Chile is now in the hands of Congress and 
is much like the government of England. Authorities 
on South America tell me that Chile now has the most 
stable government of any of the twenty Latin- Ameri- 
can " republics." 

I italicize the word "now," because it must not be 
forgotten that the government of Chile is to-day con- 
trolled by the bankers and large landowners. Although 
Chile is not dominated by a dictator or a group of irre- 
sponsible politicians, it is not governed by the people, 
nor for the people. Of course, this cannot long con- 
tinue. Either gradually or suddenly, there surely will 
be a decided reaction against wealth, landlords, and the 
present oligarchy. The working people of Chile, who 
are now struggling under severe uneconomic taxation 
and constantly depreciating currency, will some day 
rebel. Then the great landowners will be taxed as 
they should be. Then the great estates will be broken 
up into small farms, and then the immigration which 
Chile so much needs will develop. 



172 THE FUTURE OF SOUTH AMERICA 

In connection with immigration, it should be said that 
the Japanese are playing a considerable part in the 
country. They have sent a large amount of capital 
there, have established business houses, and the fish- 
eries of the country, in particular, are being exploited 
by the Japanese. 

Hence, although Chile to-day, with its compact and 
homogeneous people, unspoiled by foreign blood, is 
friendly to capital, we must not fool ourselves with the 
idea that conditions will long remain the same. Those 
who go to Chile to develop mines, irrigate land, or build 
factories for the Chilean people will make money and 
be treated justly. Those, however, who expect to de- 
pend upon either their exports or imports, and continue 
to remain " foreigners/ ' may fare no better in Chile 
than in other South American countries. Chile to-day 
and for the future needs much capital. Hence the future 
of Chile depends largely upon its treatment of capital. 
For Chile to have a bright future, she should waive her 
right to put export taxes on any product whatsoever 
which can be secured elsewhere. 

A night and a day from Arica brings the traveler to 
Antofagasta, the terminus of a railway from Bolivia. 
Antofagasta is a considerable town which, in spite of a 
bad harbor, has a large commerce. As in most of these 
South American towns, the streets cross at right 
angles, and here they are broad. There are telegraph 
and cable connections, gas lights, a mule-car line, and 
fire companies. There are also two silver-smelting 
works, one of which is the largest in Chile, and nitrate 
works. 

Business is often better in Antofagasta than in any 
other West Coast city. This is probably because it has 



CHILE 173 

more diversified interests. Most people in Chile have 
sought the nitrate mines and neglected manufacturing 
and agriculture. For this reason, I believe that great 
opportunities exist in Chile to-day for manufacturing. 
Here is a rich, compact little country, about twice as 
large as California, with only three million people, al- 
most without industries of any kind. Instead of trying 
to sell goods in Chile, I would be tempted to go down 
there and manufacture them. Almost any line will do. 
Ready-made clothing would be a good one with which 
to start. Underclothing of any kind, rugs, soap, and 
in fact anything that one uses or should use ought to 
be good also. 

A stove foundry ought to pay. Chile has coal, but 
very few people have stoves. The older generation 
were trained to go without artificial heat in winter, and 
they shiver from June to September. The younger peo- 
ple, however, are now insisting on having more com- 
forts, and so the demand for heating appliances is 
increasing. 

Articles difficult to ship from the United States and 
Europe should also be profitable to manufacture in 
Chile. I have in mind furniture which is too bulky to 
ship. Chile has beautiful woods of all kinds, yet much 
of their furniture is made in Germany. Another sug- 
gestion in this line is glass. 

Dynamite, powder, and other explosives should be 
manufactured in Chile. Here is the home and source 
of the world's nitrate, the basis of most explosives, and 
among the mining camps of South America there is a 
great market for explosives. Yet to-day the nitrate 
is taken from here to America and Europe, where it is 
made into dynamite, which, at great risk, is shipped 



174 THE FUTURE OF SOUTH AMERICA 

back again to Chile, Bolivia, and Peru. It seems as if 
some enterprising Yankee could easily become the "Du 
Pont" of South America. 

Of course it would take time and capital to start all 
these things, and Chile at present is no poor man's 
country. Don't go to Chile unless you have capital. 
During a single day I have been stopped on the street 
by three stranded United States citizens who were beg- 
ging for funds by which to return to " God's country." 

The only way to find the opportunities in Chile is to 
go there and look for them. It is impossible to get accu- 
rate information in any other manner. The difficulties 
are outlined in the following interview with one of my 
friends in Antofagasta: 

"You North Americans are the most gullible people 
that ever came down the pike! You come down here 
to study trade opportunities. You bring letters of in- 
troduction from your big city banks to their corre- 
spondents here. These correspondents are either the 
English or German banks. You fellows take a taxi 
from the boat to the banks, courteously present your 
letters, and begin to inquire of your worst competitors 
regarding the trade opportunities in South America! 
These Englishmen and Germans are estimable people ; 
they give you cigars, they cash your checks; they even 
invite you for an automobile ride; but they do not tell 
you the truth about South America. 

"The English and Germans have never liked you. 
Now, since you are seeking to secure their customers, 
they truly hate you. You feel complimented when they 
take you to the ' English Club' for luncheon or a cup 
of tea, but even this is a part of their well-laid plans to 
misinform you. At the club they introduce you only to 



CHILE 175 

the chronic kickers. In addition, they egg them on so 
that even they appear at their very worst. 

"As a result of this misinformation, you conclude 
that there are no opportunities on the West Coast of 
South America. Why don't you go to one of our large 
native banks and at least hear the other side? I '11 tell 
you the reason — it is because you cannot speak Span- 
ish and must depend upon what your foreign competi- 
tors tell you." 

Certainly opportunities do exist and careful investi- 
gation will find them. 

Before passing to another subject, let me present four 
reasons given to me. why Chile possesses good oppor- 
tunities for manufacturing: 

1. The nature of its territory, which permits of easy 
access to the sea from any of its centers, and the link- 
ing up of the latter by the Longitudinal Railway, which 
will shortly be completed, and which will unite the ex- 
treme north with the part farthest south, of its terri- 
tory, excluding the insular region. 

2. Its immense deposits of coal, copper, iron, sul- 
phur, and nitrate. 

3. The great abundance of hydraulic power furnished 
by numerous rivers, having their sources in the Andes. 

4. The efficient protection afforded by the States to 
newly established industries, and the protection the 
State also grants to undertakings introducing foreign 
capital into the country. 

As nitrates are now Chile's chief export, a word about 
the industry may be of interest. The nitrates are here 
because it never rains. If it did the mineral would 
have been washed out long ago. These nitrate lands 
are barren desert, without a blade of grass or a shrub. 



176 THE FUTURE OF SOUTH AMERICA 

The region containing them is a tract of land of about 
two hundred and fifty thousand acres, with an average 
width of two and a half miles, extending between the 
Coast Range and the Andes. It is wonderful that here 
is a whole wide region absolutely unable to support 
human life, and yet alive with a busy population. All 
supplies, including water, have to be brought to the 
place. 

The deposits are often found under layers of earth of 
varying depth, though sometimes they are on the sur- 
face. They are not continuous, but seem to occur in 
spots. The raw material, called " caliche, " contains 
usually from twenty-five to sixty-five per cent, of nitrate 
of soda. After the rock is broken up, it is cooked in 
tanks from eight to twelve hours, the sand and refuse 
settling to the bottom. The liquid, which is called 
"calso," is run off into vats and is then allowed to 
evaporate or crystallize. These crystals, when treated 
and ready for export, contain about fifteen per cent, of 
nitrogen and thirty-five per cent, of sodium. 

The amount of production is regulated by a syndi- 
cate, according to the needs of the world. It is inter- 
esting to visit these establishments, called " officinas," 
but most persons find it gloomy and depressing. The 
superintendents, doctors, and other officials are well 
paid and have comfortable quarters. It is said that one 
hundred million dollars of British, German, and other 
capital is invested here. Very large fortunes have been 
made. Some new nitrate lands recently discovered are 
priced as high as two thousand dollars an acre. 

An authority says: 

"The nitrate of commerce is a white, cheese-like sub- 
stance, from which the highest grade gunpowder is 



CHILE 177 

made; it is also used in chemical works to produce 
nitric and sulphuric acid, etc., but the bulk of it is used 
as a fertilizer, doubling or tripling the harvest. As to 
its origin, there are various theories, but none is gener- 
ally accepted. A by-product, a yellow liquid, which in 
its preparation is drawn off from the nitrate into a cru- 
cible, is then chemically treated, poured into smaller 
pans, and on cooling leaves on the dish a blue crystal, 
the iodine of commerce, which costs as much per ounce 
as saltpeter per hundred pounds. The casks in which 
it is placed are covered with green hides which shrink 
and keep out the moisture. Worth from seven to eight 
hundred dollars a cask, the iodine is shipped in the 
treasure vaults with bullion. About forty per cent, of 
the nitrate goes to Germany, thirty per cent, to the 
United States, twenty per cent, to France, and the rest 
to Great Britain and Belgium." 

Most estimates seem to agree that the nitrate fields 
may last for at least one hundred and fifty years. The 
export duty or royalty levied by the Chilean Govern- 
ment gives a large annual revenue, and is indeed the 
financial mainstay of the republic, enabling direct 
taxation to be fixed at a low figure. However, it is a 
question whether Chile would not be better off in the 
long run without these nitrate fields, which Peru 
claims Chile stole from her. For they are cultivated 
to the neglect of agriculture and manufacturing. When 
Peru owned them, they proved to be the source of more 
evil than good, because they brought such large sums 
into the treasury that military adventurers wanted a 
share, and thus revolutions were made more frequent. 
It is, of course, claimed that no such thing need be 
feared in Chile. However, as the nitrates are part of 



178 THE FUTURE OF SOUTH AMERICA 

the capital of the country, which will some day be ex- 
hausted, it would certainly be wise for Chile to expend 
at least the greater part of the revenue from them in 
creating other industries. 

After sailing for eighteen hundred miles along a 
barren, desert coast, with only an occasional green spot, 
like Arica, it is good indeed to approach the next zone 
of Chile, and the port of Valparaiso, rightly named 
the " Vale of Paradise." This largest and busiest port 
on the Pacific coast of South America has no natural 
harbor, and storms make landing difficult, but a break- 
water which will remove most of the danger is in proc- 
ess of construction. This harbor is a very busy place, 
being next to San Francisco in importance among Amer- 
ican Pacific coast ports. Valparaiso, with a population 
of two hundred thousand, is the wholesale center of 
Chile. Santiago claims two hundred thousand, and 
is the great retail center. There are about twenty 
citizens of the United States in Valparaiso and about 
two hundred in Santiago. There are probably in the 
whole of Chile not more than six hundred men from 
the United States. 

The substantial business portion of Valparaiso is on 
a narrow strip of shore between the sea and the hills, 
varying in width from two blocks to half a mile, and 
the houses look as if they were climbing the hills! 
Many of the business buildings are two or three stories 
high, and it is hard to believe that the city was almost 
destroyed by earthquake and fire in 1906, the same 
year as the San Francisco disaster. Earthquakes are 
frequent but slight, a big one not being expected oftener 
than once in fifty years. The city has a frontage along 
the bay of four and a half miles, and the streets in the 



CHILE 179 

level section are comparatively straight. The nineteen 
hills upon which the rest of the city is built are reached 
by rambling and winding lanes, by stairways, and by 
steam elevators and cable cars. The lighting is by gas 
and electricity, the water comes from two reservoirs 
in the mountains, and there are double-decked electric 
cars with women conductors. It appears that in the war 
of 1879-1881 so many young men joined the army that 
women entered this service. As they proved to be sat- 
isfactory, they were retained, though not to the exclu- 
sion of the men. They are not giddy young girls, but 
are evidently of the working classes, of rather stolid 
appearance, and very intent upon their duties. They 
wear a dark blue uniform with white aprons, and collect 
fares from the upper story of the car and swing along 
the sides in quite a manly fashion, though somewhat 
hampered by their full skirts. It is pleasanter riding 
on the top of these cars; but as the fare is only half, 
the upper classes never ride there except in the evening, 
when they may not be recognized from the street. 

The flower and fruit markets rival those of California, 
and the hillsides are covered with the yellow California 
poppy. A few miles north is the pretty residential sec- 
tion called Vina del Mar, where there are race courses 
and polo grounds. Many heads of commercial houses 
have their homes here, including English and Germans, 
as well as Chileans, who in many cases are descended 
from Europeans. Some of these British business men 
will tell you that the young men who come from Eng- 
land are not, as a rule, equal to those of thirty years 
ago, nor indeed equal to the young Germans who come 
out. They care less for their work, are more interested 
in sports than in any pursuit needing mental exertion, 



180 THE FUTURE OF SOUTH AMERICA 

and are less willing than the Germans to spend their 
evenings in the study of the language and business 
conditions of the country. Whether this is true or not, 
it is certainly said in many foreign ports of the young 
men who come to take the places of their elders. This, 
however, should give the young men from the United 
States an additional advantage. 

Valparaiso, as I have said, is the great wholesale 
market of Chile. Here are located the home offices of 
the importing houses that send their traveling men up 
and down the coast. One of these men has said : 

"Valparaiso buys and sells almost all there is to buy 
and sell. I do not believe I would except even snow 
plows. My knowledge of the entire commercial world 
may not be big enough to make me an authority on the 
matter, but I would not hesitate to bet on that state- 
ment. Chile needs much of what is used in the tropics 
over her northern areas; over her southern territories 
and Tierra del Fuego she needs much of what is used in 
cold countries; and of course she consumes everything 
needed in the temperate zone, because there the bulk 
of her population lives. Valparaiso keeps a finger on 
the pulse of customers throughout this diversified re- 
gion, and loses no chance to supply what may be 
needed. Yes, indeed, the man who knows how can 
sell practically everything in Valparaiso or some part 
of Chile." 

Regarding the reason why Europeans have been so 
great a factor in the development of the South American 
countries, a writer who is also a successful commercial 
traveler in all the Americas has this to say: 

"As the whole country grew and a foreign trade be- 
came more necessary, it was Europe that first and 




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CHILE 181 

quickest supplied the wants of the people, taking their 
products when they were sent abroad. From Europe the 
people came, as they came to the United States, immi- 
grants willing to undertake new work. On the West 
Coast, only Chile had a noticeable immigration, but 
European capital was glad to provide the strength 
where native arms had the ambition to undertake ma- 
terial improvements. Thus the feeling that Europe 
was a friendly neighbor grew by an uninterrupted in- 
tercourse after independence was declared. The United 
States, on the other hand, removed as it was in a geo- 
graphical sense, and failing to keep up a foreign com- 
merce while its own interior resources were being so 
marvelously developed, fell away from an intimacy 
established in earlier days." 

Thus there is in South America a close affinity to all 
European standards. The people do not know North 
Americans. They are willing to welcome any Yankee 
who comes to them with an honest and open mind, but 
he must prove his purpose to be sincere. Europe is 
already in Chile. The United States had little to do 
with the commercial prosperity of Latin America. 
Hence the markets of South America, however vast 
their consuming power, can be reached only by an 
understanding that Europe is a great competitor, and 
that manufacturers in the United States must meet 
European standards if they are to obtain the success 
in South America for which they hope. It is the fail- 
ure to grasp conditions of this nature that discourages 
some commercial men when entering the field for the 
first time. 

One trouble with men from the United States is that 
they are in too much of a hurry. We must respect the 



182 THE FUTURE OF SOUTH AMERICA 

"manana" (to-morrow), and get acquainted with the 
people and their customs before attempting to do 
business. 

A merchant in Santiago criticised our salesmen as 
follows : 

"The salesmen whom your manufacturers are con- 
tinually sending down here are in too great a hurry. 
They visit three or four of our principal cities and then 
fly over the Andes from Santiago to Buenos Aires. 
Before your countrymen can hope to secure trade down 
here, they should study South American geography. 
Our most rapidly growing cities your salesmen never go 
to because parlor cars do not run there. The English 
and German salesmen do not wait for parlor cars or 
good hotels. They not only visit these growing south- 
ern towns, but they remain long enough to learn the 
people and secure their friendship. You North Ameri- 
cans think that the only factors to secure trade are 
price and quality. This idea is a great mistake when 
applied to South America. Friendship and credit we 
consider more than price and quality. We also value 
courtesy very highly. 

"Another trouble with salesmen from the United 
States is that they get homesick. Our young people 
want social life, and the best thing for your salesmen 
to do is to get a card to a club, and so be entitled to meet 
the better class of residents. These will always be 
found gracious and friendly to a stranger approaching 
them in the right way. One thing more — if married, 
have your salesmen take their wives with them." 

Santiago, named by Valdivia for the patron saint of 
Spain, is about sixty miles from Valparaiso. I believe 
it has the finest site in South America, excepting perhaps 



CHILE 183 

that of Rio de Janeiro. When Valdivia came down to 
this region to complete the conquest of this southern 
part of the Empire of the Incas, he chose a great rock 
rising out of the plain on the banks of a mountain tor- 
rent, and here he built a fort. Later he was for a long 
time besieged here by the Indians. After he had left 
the region, the fort still remained and became the center 
of the city which gradually grew up beneath it. It is 
now the pleasure ground of Santiago, laid out as a park 
with many trees, shrubs, and flowers, and is called El 
Cerro Santa Lucia. 

There are in Santiago many beautiful public build- 
ings, and the Municipal Theater is said to surpass any- 
thing of the kind in the United States, with its elegantly 
furnished boxes, large foyer and refreshment room, and 
seats for an audience of four thousand. On the top of 
Cerro Cristobal, nine hundred feet high, is an obser- 
vatory, which is a branch of the famous Lick Observa- 
tory of California. The churches, schools, colleges, and 
museums are also of interest. The climate is temperate ; 
the summers not very hot, though extremely dusty, and 
the winters very mild, though rather uncomfortable to 
one used to artificial heat. Until very lately, sanitary 
measures have been neglected, so that epidemics were 
frequent, but as in so many of these West Coast cities, 
the officials are now waking up to a realization of the 
need of sanitation, and a beginning has been made in the 
installation of an adequate system of sewerage in both 
Santiago and Valparaiso. I understand also that the 
water supply of Santiago is good, and of Valparaiso 
fair. 

In Santiago, the drinking water is brought to the city 
from the hills, a distance of eight miles, and for other 



184 THE FUTURE OF SOUTH AMERICA 

purposes the supply is obtained from the two rivers 
which cross it. There are eleven daily papers; the city 
has telephone and telegraph connections, electric 
cars, and electric lights. There are flour mills, foundries 
and machine shops, tanneries, and some factories, in- 
cluding one for making bicycles. Since the completion 
of the Trans-Andean Railway, Santiago has direct 
communication with the eastern part of the continent. 
In this connection, it is interesting to note that the 
Pullman cars on the railroads come from the United 
States. 

I find that citizens of the United States are not very 
popular in Santiago. This is partly due to the fact that 
a few of our friends who have gone to Chile are bank 
absconders or other fugitives from justice; partly be- 
cause of our " Monroe Doctrine"; and partly because 
the banks, newspapers, and steamship lines, from which 
three sources Chileans get their foreign news, are con- 
trolled by our competitors, the English and Germans. 
There is no" doubt that our present administration at 
Washington has done much to heal the wounds. But 
our foreign policy has at times nearly started a dem- 
onstration against our few residents in Santiago — 
much to the secret delight of the English, French, and 
German colonies in the city. 

In connection with this matter of the press, let me 
quote the following remarks of one of my South Ameri- 
can friends, which explain the situation fully: 

" You citizens of North America show great stupidity 
in permitting the Europeans to control the press of 
South America. Practically all our leading journals are 
directly or indirectly controlled by English or European 
capital. Even those of us natives who are trying to treat 



CHILE 185 

the United States fairly are handicapped by the news 
service. Apparently, your United States press has 
some arrangement with the European news agencies 
that they — the Associated Press — shall keep out of 
South America. This means that much of the United 
States news which we get is doctored in Europe to ap- 
pear unfavorable ; while the European news is doctored 
to appear favorable. It certainly is very stupid of you 
people not to insist that we have more direct news 
service from your country. Why, even the guide- 
books on the United States which we read have been 
written and published — not by you people, but by 
your enemies and competitors." 

There are certain striking contradictions and com- 
pensations in the financial and physical conditions of 
Chile which it is well to consider when speaking of her 
resources. The most remarkable of these contradic- 
tions is that from the barren, rainless, and apparently 
worthless provinces of the north is obtained an export 
valued at nearly forty-three and a half million dollars 
annually — a sum which represents two thirds of the 
total exports of the republic. This nitrate product from 
the most unfertile region of the world is, in itself, the 
direct cause of increased fertility in every land to 
which it is exported. In addition to this, the high 
wages offered to those engaged in this industry have 
drawn from the agricultural districts so large a propor- 
tion of laborers that agriculture has been seriously 
crippled. Hence, less than one fourth of the arable land 
is now occupied. As a consequence, imports of food 
into Chile each year are valued at nearly six million 
dollars, or about eleven per cent, of the total imports 
into the country. 



186 THE FUTURE OF SOUTH AMERICA 

Should the nitrate deposits become exhausted, the 
labor would naturally be diverted into agriculture, and 
the resultant growth of foodstuffs might compensate, 
in a measure at least, for the loss. Here, then, would 
seem to be an opportunity for some one with capital 
and a knowledge of intensive farming to go into that 
business and help supply Chile with some of the food 
she now has to import. In my talks with government 
officials, I have strongly advised the development of 
agriculture. Such work should be done at once, so that 
the republic would be in a position to use her other 
resources if deprived of what is her main source of 
income at present. The known fertility of a large sec- 
tion of Chilean territory, the many other minerals 
which are already worked and which are probably to 
be discovered (only recently valuable deposits of tin 
have been found, and near Punta Arenas are known 
to be oil fields), the wealth of the great forests of the 
south, and the steady growth of manufacturing in- 
terests, constantly widening in their scope, promise 
more and more wealth for Chile. Why, therefore, 
should not foreign capital, including that of the United 
States, come in for a share? 

One product not often thought of in connection with 
South American resources is fur. The valuable chin- 
chilla is found in the mountainous and barren regions 
of both Peru and Chile, the export of these alone 
bringing to the latter country a few years ago in one 
year three hundred and forty thousand dollars. In the 
extreme south are other fur-bearing animals, including 
seals, whose fur is different from that of the northern 
variety, but still valuable. 

Cattle raising is carried on to a considerable extent, 



CHILE 187 

and sheep are a valuable asset, especially in the region 
of Puntas Arenas on the Strait of Magellan. Of this 
section, it is said, "It pays to keep grazing stations 
here, since sheep, forced either to grow thick fleece or 
die of cold, tend to the former alternative." To-day, 
Chile is importing goat and sheep skins, though having 
the greatest area of unused pasture land in the Ameri- 
cas. There are valuable oyster beds at the harbor of 
Ancud. Apiculture is carried on to some extent. The 
Italian bee is perfectly adaptable to the requirements 
of the country, and there are one hundred and fifty 
thousand beehives in Chile. Conditions under which 
this branch of industry may be worked are excellent, 
but as yet few persons devote themselves to it. As 
there is a widespread demand for honey and wax 
abroad, the total production finds an easy outlet. 

All kinds of fruit may be raised in Chile, and there 
are some vineyards which export wine. The forest land 
in Chile is estimated to cover an area of seventy-five 
thousand square miles, or nearly twenty-six per cent, 
of the total area of the country. There is an abundance 
of wood suitable for building purposes and the making 
of furniture, and also species adapted for medicinal 
uses. Mention may be made of quillai (Quillaja sapo- 
naria), the bark of which, under the name of "Panama 
Wood," replaces soap in the washing of silk, fine linen, 
etc. Elm and other trees furnish a bark rich in tannin, 
which is much in demand in the tanneries. The achi- 
lean palm supplies a delicious syrup. According to 
authorities on Chilean timber, there are over one hun- 
dred different species in Chile. The Chilean laurel, 
examined in Norway, was found to yield a higher qual- 
ity of cellulose or woody fiber than what is obtained in 



188 THE FUTURE OF SOUTH AMERICA 

that country. Only capital is needed to cut and pre- 
pare this timber. 

Chilean railways belong partly to the State and partly 
to private concerns. There are about seven thousand 
miles of railways in Chile open to traffic, and thirty-five 
hundred miles in course of construction. The State 
owns over half. During an average year the State rail- 
ways carry about twelve million five hundred thou- 
sand passengers and five million tons of cargo, which 
render a gross income of about twenty-eight million 
dollars. The private railways carry annually about 
one million eight hundred thousand passengers, and 
five million tons of cargo, rendering gross receipts 
amounting to about thirteen million dollars. 

The Chilean Government is projecting the electrifi- 
cation of the State railways, and to this end a bill has 
been presented to Congress for the electrification of the 
first section of the railway which unites Santiago, the 
capital, with Valparaiso. Motive power supplied by 
the river Aconcagua would be utilized for the purpose. 
Should the result of the electrification of the first sec- 
tion prove satisfactory, the remainder of the central or 
main line will be proceeded with. 

Whether or not any new road would pay for many 
years, I do not know; but apparently the government 
railways of Chile are now frightfully operated. It is 
said that more men are employed per mile on Chilean 
railways than anywhere else in the world. Every poli- 
tician strives to have all his constituents employed on 
the railways ! They are now being run at a large annual 
loss, although a Belgian syndicate has offered to pay all 
expenses and a rental to boot for the privilege of oper- 
ating these lines. May this be an example to the 



CHILE 189 

United States, which enjoys the best operated railways 
in the world. 

Farther south in Chile, there is a decided change in 
the scenery. As the rainfall steadily increases (from 
fifteen inches annually in Santiago to over a hundred 
inches four hundred miles farther south), the streams 
are fuller, there is more verdure, higher trees, and richer 
grass. The mountains are lower, but the snow line also 
falls. The air is soft and pure, and, as one writer puts 
it, "As compared with the desert regions of northern 
Chile, the difference is as great as that between the 
verdure of Ireland and the sterility of the Sahara.'' 

One passes several ports in going from Valparaiso to 
Lota. This place owes its importance to the coal and 
copper mines in the vicinity, which give employment 
to more than half the population of the district. The 
workings of these mines extend far under the deep sea. 
The same company operates also two copper smelters, 
a brickyard, tile factory, and glass bottle factory. On 
an eminence behind the town there is a wonderful 
botanical garden, which contains a large variety of 
trees, shrubs, and plants, both of temperate and tropical 
regions. In contrast with the garden on the height are 
the mines, where are streets, shops, restaurants, black- 
smiths' shops, stables, etc., nearly a quarter of a mile 
below the surface. 

The vegetation and general appearance of this south 
Chilean coast are strangely unlike those of the Atlan- 
tic coast of either North America or Europe, and are 
more HI* that of California. The shore is rocky in 
some places, and on others there are sandy beaches 
backed by thickets or grassy flats. Farther inland there 
are rich pasture lands, easily made fertile, and wonder- 



190 THE FUTURE OF SOUTH AMERICA 

ful forests containing many kinds of trees valuable for 
manufacturing. Few people live in this vast region, so 
well adapted for supporting human life. The Indians 
live in grass huts or frame houses, and till the soil or 
raise cattle, though a few go north to seek work, and are 
considered excellent laborers. 

It is said that comparatively few immigrants enter 
this part of Chile, and there seems to be much land not 
yet occupied. It would appeal, I should think, to a 
young man who loves country life, who is not in a hurry 
to be rich, and who can make himself at home in a land 
whose language is not his own. Climate, soil, and 
scenery are all exceptional, and one famous traveler 
goes so far as to say, "Of all the parts of South America 
that we visited, southern Chile stands out to me as the 
land where one would choose to make a home." It is 
not so inaccessible, either, as one would at first think. 
The railroad comes to Osorno, only forty hours from 
Santiago, passing through Temuco and Valdivia, with 
a spur to Conception and Lota, farther up the coast. 
Osorno is about a hundred miles from the series of 
channels beginning at Chiloe Island, and extending to 
the Strait of Magellan, seven hundred miles south. 
The Taytao Peninsula extends out and breaks the con- 
tinuity of this channel passage, but from Chiloe to this 
point there are over a thousand islands, said to be really 
a submerged portion of the Andes. Some of these rise to 
a height of two thousand feet, and are thickly wooded, 
as is also the opposite shore of the continent, to a height 
of fourteen or fifteen hundred feet, above which ap- 
pears only the rough rock formation. The woods 
become less dense as the Strait of Magellan is 
approached. 



CHILE 191 

There is not much of interest south of Lota, until 
Punta Arenas, on the Strait of Magellan, is reached. 

There is no reason why our manufacturers should not 
do more business in Chile. I do not mean that Chileans 
should buy more goods, but that they should buy of 
us goods which they are now buying from Europe. 
United States manufacturers should sell goods which 
have for years been sold in Chile by England, France, 
and Germany. Moreover, the manufacturers of the 
United States can do this when they will cease to be so 
pig-headed and independent. All that is needed to sell 
goods in Chile is a willingness to select styles, colors, 
and qualities that the Chileans prefer. If the Chileans 
desire a cheap and flashy class of goods, why not give 
it to them? If goods must be transported on mule 
back, why not pack them so that they can be carried 
safely? If it is the Chilean custom to do business in 
certain ways, why not meet such ways, if it can be done 
without loss? Why be so conceited and unaccom- 
modating? We citizens of the United States are a nar- 
row-minded people, and we must get away from this 
provincialism before we can get a world market for 
our goods. 

When it comes to investing money in the West Coast 
countries of South America, I advise caution. Many 
investments are absolutely safe and yield well. Others, 
for legal and various other reasons, are unsafe. In 
Chile, the danger is from taxation. The United States 
knows nothing about export taxes. We do not have 
them; Chile, however, lives upon export taxes. An 
American company develops a mine in Chile. After 
it gets in good condition and becomes a money-maker, 
the Chilean Government may put an export tax on all 



192 THE FUTURE OF SOUTH AMERICA 

ore which it ships out of the country. The government 
has a theory that here is a way to raise a tax which not 
only must be paid by foreigners, but which will even 
lower the price of such ore in Chile to Chileans. Now 
these export and other taxes which may at any time be 
levied are reasons why American capital does not go 
more to Chile, and why it is justified in not going. 

In short, Chile is a fine country, with good climate, 
resources, and people. Chile is sure to become a good 
market for United States goods, but before investing 
capital in Chile, make sure that you are exempt from 
increased taxes for a certain number of years, or else 
have your contracts such that the Chileans themselves 
must pay any increased taxes which might be levied. 

What a welcome I received at Antofagasta! From 
the people? No. My welcome was from the ducks. 
What the correct ornithological name for them is I do 
not know. Some called them pelicans; others said they 
were gulls; but my little girl called them ducks, and 
this name was good enough for most of our fellow 
passengers. There were thousands — yes, probably 
nine hundred thousand — of these birds. I never 
saw such a sight in my life. Most of them rested on 
the water while the others were flying a few feet above. 
Our boats did not seem to disturb them. They would 
rise from the water only as a school of hungry sea lions 
came along. Then they would hover about six feet 
above the sea lions' heads, saucily flying along, as if to 
say: "Oh, you will catch me, will you? Well, you can't 
fly, old fellow, and I can." 

Then one of them would drop down as if to peck at a 
sea lion's nose. The latter would try to jump up and 
catch the bird, but owing to his great weight, he could 



CHILE 193 

get his head only a couple of feet above the water, so 
he would drop back again. Yet there are so many 
birds that once in two or three days a lion catches one, 
and is rewarded for his patient waiting. I never saw 
so many and such large sea lions before. It was actu- 
ally necessary once to stop our large launch and wait 
for a crowd of the birds and lions to get out of the way. 
I suppose that these ducks, or gulls, are the birds to 
which the country owes its vast guano deposits, the \ Q 
forerunner of the great nitrate industry upon which \ ) 
Chile is so dependent. 

Upon reaching shore, I went up the wharf and along 
a narrow street where men were carrying great baskets 
of squashes, melons, and other farm products. I was on 
my way to an English bank. Good United States money 
was no good in Antofagasta, Chile. Hence I needed to 
get some "good" Chilean money. Imagine my surprise 
when for ten dollars in United States gold I received 
sixty-four dollars in Chilean paper money! I thereupon 
said to the banker: 

"From what I have seen of Chile during my first half 
hour here, I should say you were long on ducks and 
dollars. Certainly I have never seen either so plentiful 
anywhere else in the world." 

To this the banker replied: 

"No; what you say is n't true even in jest; but if 
you can imagine the ducks as representing the nitrates, 
and the dollars as representing our credit, it is true that 
neither are in much demand to-day. The market for 
both our nitrates and our money has so greatly les- 
sened that the nitrate industry is working only about 
twenty per cent., and the dollar is worth only about 
fifteen and a half cents. Furthermore, you can say 



194 THE FUTURE OF SOUTH AMERICA 

that the future of Chile depends upon finding a market 
for her ' ducks ' (nitrates) and her depreciated dollars. 
In other words, Chile needs customers and credit — cus- 
tomers for her nitrates and credit in order to secure 
capital." 

With these words, I was introduced to Chile. From 
Antofagasta I went to Valparaiso. Here again I was 
greeted by the same birds. Although the first vessel to 
enter the port of Valparaiso after it was opened to the 
world in 1811 was the frigate Galloway from New York, 
yet the ship on which I was a passenger in 1915 was 
the only one of the hundred or more in the harbor which 
carried the United States flag. 

Chile does need customers and credit — customers 
for her nitrates and credit in order to develop her other 
industries. For both, Chile has heretofore depended 
upon Europe. England and Germany have thus far 
taken a large part of the nitrates and furnished 
eighty per cent, of the capital. Of course the Chileans 
should save more themselves, but they don't and won't. 
They are not lazy and good-for-nothing, like the natives 
in certain other parts of South America; but they like 
the good things of life, they think much of show, and 
would rather give a mortgage than save up capital. 
There is much formality in Santiago, and this was 
strongly brought home to me when I called upon the 
President of Chile, Sefior Don Ramon Barros-Luco, a 
fine, dignified gentleman, nearly eighty years old. 

Sefior Don Ramon Barros-Luco was born of one of 
the seventy leading families of Chile. (Although Chile 
is called a " republic," it is ruled by an aristocracy of 
the strictest caste.) Sons of these families take the 
names of both parents. Sefior Don Ramon Barros- 



CHILE 195 

Luco graduated from the National University of Chile 
as a lawyer in 1858, was elected member of Congress 
from Valparaiso in 1861, and by 1872 became Prime Min- 
ister and Minister of the Treasury. He was later again 
elected to Congress and became Speaker of the House, 
after which he was promoted to the Senate, and later 
appointed Minister to France. He has been elected to 
important outside offices, such as President of the Agri- 
cultural Society and President of the Society for De- 
veloping Home Industries. Hence, not only has he had 
long political experience, but he is also well posted re- 
garding the economic and financial condition of Chile, 
concerning which I was anxious to learn authoritatively. 

After much formality, I finally reached the beautiful 
state reception room where the President was waiting. 
After proper introductions, I said: 

"Mr. President, as you know, South America is the 
fad among United States business men to-day. They 
are especially interested to learn of Peru, Chile, Argen- 
tina, and Brazil. I want you to tell me about your 
country." 

To this he replied: 

"The Republic of Chile, with a population of four 
million, forms a long and narrow strip of land along 
the western coast of South America, and has an area 
equal to the combined areas of Germany, Belgium, Den- 
mark, Holland, and Switzerland. As regards its physi- 
cal aspect, Chile can be divided into four perfectly 
outlined zones, viz.: 

"First zone, Desert. This zone, extending from 18° 
to 27° south, comprises the Atacama Desert, and con- 
tains the inexhaustible nitrate deposits. As there is 
scarcely any rainfall and very few streams, the vegeta- 



196 THE FUTURE OF SOUTH AMERICA 

tion is limited to certain small valleys, where are found 
alligator pears, figs, and pomegranates, and where 
barely sufficient hay is raised to meet local needs. 

" Second zone, Mineral. This zone extends from 27° 
to 33°, and has abundant mineral wealth, including 
gold, silver, copper, cobalt, nickel, lead, iron, and 
magnesium. In this region the Andes reach their high- 
est point. Some vegetation is encountered, and the 
vineyards produce fine wine and raisins. 

"Third zone, Agricultural. This central zone lies 
between 33° and 42°, and includes, between the two 
mountain ranges, an exceedingly fertile valley, with 
streams useful for navigation and for hydraulic power. 
In this valley is the origin of the largest and most 
solid fortunes amassed in the farming industry. All 
kinds of fruits, extensive forests, many minerals, and 
rich coal mines are also here. 

"Fourth zone, Insular or Island. Between 42° and 
46°, the Coast Range is transformed into a vast archi- 
pelago, extending all along the coast to Cape Horn. 
On the mainland are great forests, and splendid pasture 
land, with abundant rains. The raising of cattle has 
here prospered to such an extent that it is now in a 
flourishing condition. 

"On account of its many latitudes, Chile has a cli- 
mate varied and unique, but of invariable mildness. 
It is hot and dry in the north; temperate and some- 
what rainy in winter in the central zone; and cold, with 
plenty of rain, in the south or insular zone. In the moun- 
tain region, the climate is dry and varies in accordance 
with the height." 

I next asked the President regarding the assets of 
Chile, and what Chile has to offer to foreign capital. 



CHILE 197 

In reply he asked me to note the following facts from a 
report by the Commercial Section of the Chilean Gov- 
ernment : 

Chile is the only country which produces nitrate in 
the natural state. The value of this nitrate amounts 
to over one hundred million dollars in United States 
gold per year, of which the government receives about 
twenty-five per cent, in export taxes. In normal times, 
the industry employs about fifty thousand men. Ru- 
mors have at times gone forth that these nitrate 
deposits will soon be exhausted, which assertion is 
absolutely without the slightest foundation. Thorough 
investigations and explorations have proved that the 
deposits of nitrate existing amount to 5,408,204,000 
metrical quintals of one hundred kilos each, or a suffi- 
cient quantitjr of exploitable nitrate to last for a period 
of two hundred years at the least. Further, it has been 
mathematically calculated that there is still an exten- 
sion of nitrate deposits to be examined which is thirty- 
four times larger than the area already examined. The 
future of Chilean nitrate is assured, in spite of the com- 
petition from the artificial product, because the present 
method of manufacture, being very primitive, is sus- 
ceptible of great improvement. 

I was not surprised to have the President place ni- 
trates as the most important of all. Statistics show that 
the entire prosperity of Chile depends, at the moment, 
on the nitrate deposits. They furnish employment to 
labor, trade for the merchants, and cargoes for the 
ships. They pay the running expenses of the govern- 
ment. When the nitrate industry is booming, Chile is 
prosperous; when this is stagnant, Chile is at a stand- 
still. 



198 THE FUTURE OF SOUTH AMERICA 

As I have already indicated, these nitrate mines once 
belonged to Peru, and Chile took them after the war 
of 1884. Chile thought she was getting a great prize, 
but leading men of Chile admit that these mines have 
been a curse. Before they were taken from Peru, the 
young men of Chile were an industrious and economi- 
cal body of people; but conditions are now entirely 
changed. The people have had a taste of " easy money." 
Every one now wants to be a lawyer, doctor, or poli- 
tician. The soil and manufacturing are being neglected. 
If Chile is not careful, she will be like so many men in 
the United States, who once had a good business, but 
after making some easy money in the stock market, 
neglected their business, and finally lost everything. 

The President then took up the subject of other 
mines. Said he: 

"Mining is beyond doubt the most important 
branch of the industrial activities of the country. 
Even the subsoil contains every kind of mineral known 
up to the present day. These rich deposits have hardly 
been scratched, and are an inexhaustible source of 
future wealth for the nations. The mineral and metal- 
lurgical production represents a value of one hundred 
and twenty-five million dollars a year, which is vastly 
superior to the amount derived from the agricultural 
and manufacturing industries. The future of the cop- 
per industry is of great importance to my country. In 
addition to the mines of the Braden Copper Company, 
the Chilean Exploration Company of New York is now 
opening up the largest low-grade copper mine in the 
world. Here, it is claimed, copper will be produced for 
six cents a pound. Chile may some day be the greatest 
copper-producing country in the world. 



CHILE 199 

"With regard to gold and silver mining, these in- 
dustries cannot now be said to be in a flourishing condi- 
tion. This is due not to any scarcity of ore (there are 
extensive deposits) , but to the fact that the huge ex- 
tensions which at one time made the business a very 
lucrative one have yielded up all the ore contained in 
the richest layers, and more capital is needed to work the 
mines at greater depth. Further capital and modern 
machinery might make the working of these mines very 
remunerative. 

"The iron industry is yet in its infancy and will 
secure a prominent place in the world's production, as 
the enormous deposits which up to now have been kept 
practically intact will give field to exploitation on a 
huge scale. Just at present, the only important mining 
establishment is 'El Tofo' in Coquimbo. This. is an 
enormous mineral deposit producing sixty-eight per 
cent, iron ore. The owners have signed a contract with 
a North American concern, which has undertaken to 
work the mines and supply the smelting works with the 
quantity of ore required, the rest of the ore being ex- 
ported. There are numerous similar deposits in the 
north of Chile. 

"Coal is another mineral product with a brilliant 
future. The quantity mined has gradually increased 
during the past ten years, amounting last year to one 
million five hundred thousand tons. As the demand for 
coal is great, this increase is significant, especially if we 
consider that the production of the country is insuffi- 
cient to meet the country's demands, and foreign coal 
has to be imported to make up the deficiency. We 
must remember, however, that the pits at present being 
worked bear a very small relation to the extent and im- 



200 THE FUTURE OF SOUTH AMERICA 

portance of the coal fields, there being large deposits 
waiting development and much ground to be explored. 
The carboniferous region is found within the borders of 
the Conception and Arauco provinces. Last year eight- 
een pits were in operation, employing 8,705 workmen. 

"The borax industry of Chile is also of great impor- 
tance, and we supply fifty per cent, of the world's con- 
sumption. This is in spite of the fact that only the 
deposits at Ascatan are being worked, those at Chil- 
caya being kept in reserve. Common salt is yet another 
of the abundant products of Chile. At present the pro- 
duction is limited to supplying the demands of the local 
market, which in 1913 amounted to only 17,045 tons. 
Yet the Salar Grande de Huanillos or Punts de Lobos 
salt deposit alone would be quite sufficient to supply the 
world's demand for many years to come. Its surface 
is seventy-five thousand acres, with a sounded depth of 
ninety-nine per cent, pure salt. On the basis of an 
annual consumption of twenty-five thousand tons, this 
bed itself would be ample to suffice for the needs of the 
country indefinitely. 

"There are also sulphur and other deposits of great 
value. Tell your friends in the United States that our 
mining laws are very liberal, and that our Commercial 
Section will gladly give full particulars to any citizen 
of the United States. We also urge all to write us or 
come and see the properties for themselves before in- 
vesting or taking the word of others." 

When I compared the verdure of central and southern 
Chile with the remainder of the West Coast, it seemed 
to me that this country has great agricultural possibili- 
ties. I therefore called the President's attention to a 
report that Chile has seventy million acres suitable for 



CHILE 201 

farming, all of which has sufficient rainfall or is capable 
of irrigation. Of this only about one million eight hun- 
dred thousand acres are said to be in actual cultivation, 
on account of the lack of labor. I had also heard that 
twenty million acres in the central zone are especially 
fitted for fruit growing, and that Chilean peaches, figs, 
almonds, and olives are unexcelled; and that the more 
hardy fruits, such as apples, pears, plums, and the like 
can be grown as well. Concerning these agricultural 
possibilities, the President replied: 

"I do not doubt that agriculture will be developed 
more and more in Chile; but I do not think it has any 
such possibilities as Argentina can offer. Labor is too 
scarce in Chile to make agriculture really profitable or 
attractive to immigration from your own or any simi- 
lar country. Certainly the most that our farmers can 
hope to do is to supply the Chilean market, and to 
make it unnecessary for us to import foodstuffs. The 
same conclusion applies to our timber. We have ex- 
tensive forests; but they are all needed for home con- 
sumption, and not a foot of lumber should be exported. 

" Instead of advising capital from your United States 
to invest in lands for agriculture, I advise them to con- 
sider manufacturing possibilities in Chile. Next to 
mining, Chile must look to manufacturing for future 
growth. I believe that Chile is to become the great 
manufacturing center of South America. Here we 
have iron, coal, timber, water power, chemicals, wool, 
and all the raw materials. I believe that your people, 
instead of trying to sell us goods, should come down 
here and build mills. Give Chile a market for her 
nitrates, copper, and iron, together with capital to 
build mills, factories, and ships. In such a case, Chile 



202 THE FUTURE OF SOUTH AMERICA 

will become a great industrial country, an exporter in- 
stead of an importer." 

In closing, I asked the President if he had any sugges- 
tions for the manufacturers of the United States as to 
how closer relations could be established between us 
and Chile. Although we buy eighteen per cent, of 
Chile's exports, we supply only fourteen per cent, of its 
imports. 

He replied at once : 

" Your merchants of North America must start banks 
here in Chile before you can hope to accomplish much 
in securing Chilean trade. People in South America 
judge a foreign country's importance by its steamship 
lines and banks, especially the latter. Yes, I cannot 
place too much stress upon both the need of good North 
American banks in Chile and the profit which should 
accrue to your people who shall start such banks. 
Money often loans in Chile on the best security at 
from ten to twelve per cent. The government tax on 
banks is very slight. Our Constitution demands that 
foreign and domestic banks must be treated alike. 
Moreover, a bank established now should continue to 
be a source of great profit even after Chile becomes an 
exporter of merchandise instead of an importer. As a 
bank does all its business in paper currency, it is not 
affected by the variations in exchange and the other 
factors which may bother an importer. I strongly ad- 
vise the manufacturers of the United States to get to- 
gether and form a Bank of North America for Chile." 

In this connection, I have been told that the German 
and English banks copy full particulars from the 
drafts, bills of lading, etc., which manufacturers in our 
country are compelled to use when sending goods to 



CHILE 203 

South America. For instance, assume that a big de- 
partment store in Santiago buys a bill of goods from a 
New England mill, and the New England people draw 
upon the Chilean store for payment. Assume that the 
New England people deposit their draft in the Tenth 
National Bank of Boston, which may sell it or send it 
to the English Bank of Santiago for collection. It can 
readily be seen that it would be a very simple matter for 
the English bank to note the character of the goods sold, 
to whom these goods are going, and the price at which 
they are sold. British loyalty might readily demand 
that this information be furnished to English import- 
ers who would next time outbid the United States 
merchants. 

Whether the English and German banks do this sys- 
tematically, I do not know; but this is a sub rosa 
reason, given in South America, why our United States 
merchants do not get more repeat orders. Certainly it 
looks suspicious to see catalogues of printing ma- 
chinery begin to come to a Chilean publisher from Eng- 
lish and German concerns shortly after he buys a 
printing press from a New York firm. 

To-day, when you go to your big bank in New York, 
Philadelphia, Chicago, or some other city, to get a re- 
port on the credit of some South American concern, 
what does your bank do? It directly or indirectly de- 
pends upon its South American correspondent for such a 
report. This usually means that ultimately an English 
or German bank is resorted to for such a report. Is it 
not human nature that such a report would discourage 
you from giving the desired credit if the concern is good, 
and encourage you to do it if the concern is no good? 
German and English mistaken loyalty to their country- 



204 THE FUTURE OF SOUTH AMERICA 

men may or may not be responsible for such results, 
but it nevertheless continually happens. It is an old 
saying that what costs nothing is worth only what it 
costs; and this applies to certain reports and other 
service which banks in the United States are to-day 
securing for you and other customers relative to Latin- 
American credits. 

But from what I have said do not get any exagger- 
ated idea of the Chileans. Although they are in ad- 
vance of the Venezuelans, Colombians, Ecuadorians, 
Bolivians, and even the Peruvians, they still have many 
of the Latin-American weaknesses. The average 
Chilean seems interested only in to-day. He — and 
especially his wife and children — seem to be very par- 
tial to show and artificial makeshifts. The Chileans 
are not exactly lazy, but they are far from active. They 
still say "mafiana." 

Yet we must not be too critical of these people. 
Had we been under the Spanish yoke for over four cen- 
turies and had our savings stolen from us as fast as we 
accumulated anything, would we have formed the 
habit of saving? I honor the Chileans for what they 
have gone through and overcome. 

One is surprised to see so little colored blood in Chile. 
Instead of a large per cent, of the people being dark, as 
is the case in the other West and North Coast coun- 
tries, ninety per cent, are as white as the people of 
Chicago. This is probably due to the very strict immi- 
gration laws of Chile which forbid the negroes, China- 
men, and certain other races from entering the country. 

The Chileans are a very proud race. Perhaps the 
following incident may illustrate this fact. An Eng- 
lishman whom I met had been looking about for a house 



CHILE 205 

during the business depression in 1915. The day be- 
fore I was at Santiago he visited five large dwellings 
which were for rent or for sale. The tenants of all these 
were supposed to be at Vina del Mar, or some other 
fashionable resort for the summer. Newspapers were 
hung up at the windows, and to all appearances the 
houses were shut up. Imagine my friend's surprise 
when in three of these houses he found the tenants liv- 
ing in the back part! They had not the money to go 
away for the summer; they were too proud to be seen 
on the streets of the city, and so they were hiding until 
their neighbors returned from the seashore. This same 
trait is to be seen in the dresses, manners, and customs 
of all Chileans. "Send your gayest colors and latest 
styles to Chile, whatever the quality of the goods may 
be," said a Chilean merchant to me. 

Although Chileans have great respect for unwritten 
law, I am told that they have less regard for the laws 
of the land. A policeman reprimanded a small boy for 
doing something against the law. Was the boy fright- 
ened? No! He simply turned to the policeman and 
said: "You wait till I catch you going home some 
night. I '11 fix you for bothering me. Of course I can't 
help myself now, because you'll call another cop if I 
touch you. But you wait till I catch you without your 
uniform on!" 

The law is very severe on motormen, if any one is 
hurt on a tram car. Hence, when a slight accident 
occurs, the motorman leaves his car and runs home to 
hide until the excitement is over. Said I: "What does 
he gain by running home? He can easily be found 
there." 

"Yes," said my friend in reply, "but it is too much 



206 THE FUTURE OF SOUTH AMERICA 

trouble to hunt him up. If the police can catch him 
on the car, they will do so; but they would not bother 
to run after him." 

"Too much trouble" tells the story. Although the 
Chileans are far ahead of most of the South American 
people, yet even they are handicapped by the phrase 
"too much trouble." They don't seem to do things. 

It takes a lot to wake up the Latin-Americans. They 
are good at sleeping or fighting; but they seem to find 
it difficult to strike a happy medium. Hence — in ac- 
cordance with the law of action and reaction — they 
alternate from lethargy to revolution and from revo- 
lution to lethargy. 

This spirit is very evident in the moving-picture 
shows and literature of the land. Since they seem to 
crave either sleep or excitement, either the dreamy 
guitar or the tragic dime novel, the ordinary humorous 
picture at the "movies" does not appeal to them. It 
must be a picture of a lion tearing a man to pieces, or a 
bridegroom falling dead at the wedding feast, or some- 
thing equally harrowing. Exaggerated detective stories 
are in great demand, with men passing through stone 
walls, walking on the water, and doing other impossible 
stunts. 

I was greatly shocked to see a largely advertised 
trade-mark for some kind of oil, consisting of a pic- 
ture of Jesus being taken from the cross. It was an 
awful picture — to me both sacrilegious and repulsive 
— but I was told that it took well with the masses of 
Chile. 

Nevertheless, the Chileans are a fine, courtly people. 
I am always interested to note that when two employees 
of the same firm happen to meet on the street, they in- 



CHILE 207 

variably stop and shake hands, even though they may 
have met once or twice before that same morning. 
Every one seems to have plenty of time. Even the 
working men in Chile will stop and shake hands with 
one another in the most formal way. This is something 
one never sees in the United States. The Chilean day- 
laborer even takes off his hat to his co-workers — a 
very pretty custom. 

The Chileans are congenial, kind-hearted, and intel- 
ligent. I became very fond of them, as well as of their 
country, with its wonderful and varied climate. But 
readers must not forget the " ducks and dollars" to 
which I referred. Before Chile can become either a 
buyer or a seller of general merchandise, she must se- 
cure greater markets for her nitrates and greater credit 
for her people. Until that time comes, the traveling 
salesman from the United States will have hard pick- 
ing. He will feel like a salesman from Chicago, who 
when calling on a Valparaiso merchant received the 
following reply: 

"I am very sorry, Mr. Jones, that I cannot buy of 
your Chicago firm. I should like very much to do so, 
but it is impossible, for the following three reasons: 
first, because I have n't any money; second — " 

"Never mind the other reasons," broke in the Chi- 
cago salesman, "the first reason will do." 

After receiving virtually the same reply from nearly 
all the merchants in Valparaiso and Santiago, he took 
the next train for Buenos Aires. 

The future of Chile depends upon how successful it 
will be in attracting capital. At the present time, capi- 
tal is greatly influenced by the condition of the nitrate 
industry. However, I believe that the Chileans are 



208 THE FUTURE OF SOUTH AMERICA 

bright enough to develop other industries, and will not 
continue to be dependent upon nitrates alone. 

In such a case, Chile's future will depend upon its 
government's attitude toward outside capital. If the 
present landowners are selfish and consider merely their 
own ease and comfort, then legislation will continue 
along the present conservative lines in the interests of 
the few rich families of Chile. If, however, progressive 
legislation is enacted for the real benefit of the working, 
as well as the landed, classes, then all new development 
work will be encouraged and protected. 



CHAPTER XIII 

The Strait of Magellan 

From Valparaiso the shortest route to the next great 
country of South America, the Argentine Republic, is 
by rail, but the trip through the Strait of Magellan is 
not only interesting on account of the scenic features, 
but also for the commercial opportunities offered in this 
little-known land. From Valparaiso southward along 
the Chilean coast it is fourteen hundred miles to the 
Strait of Magellan. Sailing vessels cannot go through 
the strait, because the high mountains on each side 
cut off the wind, and they therefore have to " round the 
Horn." Steamers avoid this rough and stormy passage 
by going through the narrow channel which separates 
the island of Tierra del Fuego and the Horn, which is 
also an island, from the mainland of Patagonia. For 
the two days before reaching the strait, the steamer 
passes along the western coast of Chile and by numer- 
ous islands, which are uninhabited, excepting by a few 
wretched Indians, who support themselves by fishing. 
Between these islands is a perfect labyrinth of sounds 
and bays, a great hiding place for pirates during the 
past four hundred years. The land about is covered 
with woods almost as dense as a jungle. 

The Strait of Magellan is unlike any other strait 
in appearance, as the two ends are entirely different in 
their physical characteristics. Both sides of the shore 



210 THE FUTURE OF SOUTH AMERICA 

at the western end are alike in being rugged and moun- 
tainous. At the eastern end, both shores are broad and 
fertile plains. The western end is the southern terminus 
of the great Andes range of mountains, and for the first 
fifty miles the steamer passes between the peaks of these 
mountains, just projecting out of the water. In fact, the 
western end of the strait is simply a submerged moun- 
tain pass. There is hardly a sign of life from the begin- 
ning of the strait until Cape Froward is reached two 
hundred miles east. The hills are wooded, and here and 
there are great blue glaciers. There are only two or 
three settlements, each of about a dozen huts. The in- 
habitants of the interior of this country are the most 
uncivilized savages known to man. They wear no 
clothes except in cold weather, when they cover them- 
selves with one rough skin; they have no huts or vil- 
lages, but simply roam about like wild animals. They 
have not even the intelligence of animals, for the bears 
and other beasts have forsaken this southern land of 
rain and fog. 

East of Cape Froward the air is drier, the shores less 
rugged and mountainous, and the forests are thicker. 
Finally, the hills gradually decline to great, open 
stretches of land almost like our prairies of the West. 
Some seventy-five miles northeast of Cape Froward, the 
steamer reaches Punta Arenas, the most southerly city 
in the world. 

Punta Arenas is a smart little town of several thou- 
sand people. It consists of six or seven wide streets, 
partly built up, running parallel to the shore. These 
streets are crossed by others running uphill from the 
shore. The houses average very well in appearance, 
and there are some fine concrete buildings, three stories 




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THE STRAIT OF MAGELLAN 211 

high. There is, therefore, nothing especially attractive 
or quaint about the place, though it is well laid out and 
clean. The location was first used by the Chileans as a 
place of exile for convicts, but was later a whaling 
station. Recently it has profited by a vein of coal dis- 
covered in the vicinity. Owing to the opening of the 
railroad line across the Andes and also of the Panama 
Canal, house lots in Punta Arenas have recently de- 
clined in price. Besides serving as a fur market for the 
Indians of the vicinity, Punta Arenas is the port of the 
wool companies of Tierra del Fuego. Wool, I believe, 
will some day become a great product in this vicinity. 
The island is controlled by English sheep-raising corpo- 
rations, and many English have come to Punta Arenas 
to live. Indeed, most of the population speak English, 
and the port has more the appearance of an English 
colony than a Chilean town. 

As many of the guidebooks speak disparagingly of 
this town, I want to insist that it is a modern, up-to- 
date place with an active Chamber of Commerce, some 
fine stores, and two or three banks. The Bank of Punta 
Arenas has a good building and a capital of five million 
dollars. Money rates are only eight to nine per cent., as 
compared with ten and twelve at Santiago. Of course 
the climate is dreary in the winter, with short days and 
lots of snow. But whatever the climate, the town has 
a future as the wool industry develops. Although it is 
off the beaten track and must henceforth depend entirely 
on the country to the north, yet it should slowly grow. 
There is trade here, and a good idea of this may be 
gained from the following interview with one of the 
leading merchants. He said: 

"When you get back to the States, please tell your 



212 THE FUTURE OF SOUTH AMERICA 

readers that although we live in the most southerly 
city in the world, we are not wild Indians. We not only 
want to buy goods, but we want good goods. Al- 
though the German goods are lowest in price, they are 
not good enough for us. Whether buying automobiles, 
typewriters, sewing machines, shoes, or hardware, our 
customers want the very best. Moreover, if the U. S. A. 
manufacturers will send their best quality of goods to 
South America and compete for quality instead of for 
price, they will win a great victory in the end. Like- 
wise, although the Germans have been getting the 
trade, owing to their low prices, the label 'Made in 
Germany' is beginning to stand for a cheap quality of 
goods. The manufacturers and the labor unions of the 
United States have a great opportunity for building up 
a tremendous South American trade by simply in- 
sisting that 'U. S. A.' be stamped only on goods of 
quality. This especially applies to the trade here in 
Punta Arenas." 

This statement reminds me of something a gentleman 
told me on his way back from Chile. As I have said, it 
appears that one of the largest copper mines in the world 
is located in Chile, east of Antofagasta. As such a 
mining plant is in the mountains, away from civiliza- 
tion, it is necessary for the company to operate a store 
at which the men can trade. Concerning these stores, 
it was said to me: 

"When first entering the store, I was astonished at 
the fine stock of goods which was carried. I was on the 
point of questioning the manager about carrying such 
luxuries away up here in the mountains when two bare- 
footed workmen came in. The first asked for a pair of 
shoes, and the storekeeper showed him some work- 



THE STRAIT OF MAGELLAN 213 

men's shoes. ' I don't want shoes to work in,' said the 
miner. ' I work in my bare feet. I want the shoes to 
wear ! ' Then the storekeeper showed a very good shoe 
such as he himself wore; but the miner asked, ( Is this 
your best shoe? ' The clerk replied : ' No, we have some 
expensive American shoes selling at ten dollars gold per 
pair.' These were just what the miner wanted. The 
sale was quickly made, and the miner went away 
happy. 

"The other workman inquired for soap, and he was 
shown a well-known New York brand which retails in 
Chile for about twenty cents per cake. This did not 
suit at all, and he was then shown a cake of famous 
English soap, selling somewhat higher. The workman 
smelled of this and turning up his nose said: 'I want 
something that smells good like the violets that grow 
in valleys. Show me your best soap.' The storekeeper 
then went to the show case and took out some expen- 
sive Parisian soap selling at nearly one dollar and a half 
per cake. This was precisely what the miner wanted. 
He gave his entire day's wages for this cake of soap and 
happily went on his way." 

The future of Punta Arenas, to my mind, depends 
upon its being the outlet for the wool industry more 
than upon the use of the Strait as a channel for com- 
merce. If the wool industry of Patagonia prospers, and 
the ranchers continue to bring their wool to Punta 
Arenas for shipment, the city has a bright future. If, 
however, they break through to the eastern coast of 
Argentina and ship from there, then Punta Arenas 
will be handicapped. 



CHAPTER XIV 
Akgentina 

The story of Argentina's commercial and industrial 
development is a romance. Starting to realize on its 
great natural resources only about 1860, to-day the 
Argentine Republic is a billion-dollar country, the 
wonder of the world. When one appreciates that its 
period of great wealth has only begun, that most of its 
greatness is still in the future, one is almost over- 
whelmed by the possibilities presented. 

Before considering this great country in detail, let me 
say first that it is foolishness for me or any one else to 
judge a country or even a city from information obtained 
in a visit of a few days. Before going to Argentina, I 
had the country's statistics of agricultural, industrial, 
and commercial growth. To these statistics I have now 
added many others, and from them all it is now possible 
for me fairly to judge Argentina and Buenos Aires. It 
is a mistake to judge only from impressions, even though 
the most prominent and best informed people are met. 
Thus I urge readers to study a country's statistics before 
judging it, rather than to depend upon what any one 
says, whether that person has been there ten days or 
ten years. 

I once talked with a Buenos Aires representative of a 
concern well known in the United States. He laughed 
at me and my companions for attempting to pass 



ARGENTINA 215 

judgment on Argentina after such a short visit. Said 
he: "I have been down here several months and have 
traveled many thousand miles, and yet I know very 
little about Argentina. How can you expect to learn 
anything during such a short visit?" 

One of my friends turned to him and said: "By the 
way, have you seen the Boletin Official Resumen, which 
gives each month the failure statistics, bank clearings, 
unemployment figures, etc., for Argentina?" 

To this he answered: "No, I have been so busy on 
special work in Argentina that I have not yet had time 
to read dry statistics. After I get acquainted and thor- 
oughly posted as to conditions, then I may have time 
to study the country's statistics." 

Just think of this man's ignorance! And yet this 
represents the attitude of many of the North Ameri- 
cans, English, and Germans located in Buenos Aires. 
They think they know all there is to know about this 
country because they live there. I therefore urge all 
readers to give less attention to what people say about 
a country and more to its statistics. 

Another thing — don't depend upon Americans, 
English, French, or Germans for your information about 
Argentina. The Americans there have worked hard to 
get a foothold, and now do not want competition. As a 
result, they talk discouragingly. The English are polite 
and sociable, but when it comes to doing business in 
Argentina, it is asserted that they will "knife" us in 
the back! Certainly we should not expect encourage- 
ment from representatives of the French, German, 
Spanish, Italian, or other races who are now well 
located there. These people are not our friends; they 
don't want us to "butt in" to the South American 



216 THE FUTURE OF SOUTH AMERICA 

field. They therefore talk pessimistically and discour- 
agingly. Hence, in my investigations, I have depended 
only upon official statistics, or else upon information 
obtained from my Argentine friends. 

In the old geographies, Argentina was called Pata- 
gonia, and was described as a barren desert sparsely 
inhabited by wild aborigines of great stature. The 
coast is still bleak and uninteresting, the rivers still 
flow to the sea, and the winds continue to blow, but 
otherwise there is a great change. Year by year 
more land has been cultivated, and now millions of 
blooded cattle roam the pastures. After leaving 
Punta Arenas, express steamers take three days and 
three nights to reach Buenos Aires, and when the 
traveler realizes that the mouth of the La Plata River 
is very nearly in the middle of Argentina, that there 
is more than twice as much area north as south of it, 
he begins to appreciate the size of this South Amer- 
ican republic. 

The mere figures — area, 1,129,400 square miles — 
do not give a definite idea of the extent of this country. 
If transferred to North America, Argentina would cover 
the Pacific coast territory from the Canadian line to 
the southern extremity of Mexico, including the States 
of Washington, Oregon, and California and all the 
States of Mexico. If placed in the eastern part, it 
would cover that section of the United States east of 
the Mississippi, and the first tier of States beyond it. 
It would make twenty-five Pennsylvanias. Its coast 
line is equal to a line drawn from Key West, Florida, to 
Halifax, Nova Scotia, and its wide range of climatic 
conditions is indicated by the fact that its territory 
stretches over as many degrees of latitude as there are 



ARGENTINA 217 

between the most southerly point of Florida and the 
center of Hudson Bay. 

The climate, therefore, is temperate, with slight vari- 
ations, but it must be remembered that the northern tip 
of the republic is within the tropics, and that the south- 
ern extremity, at latitude 50° south, is swept by cold 
Antarctic winds. Buenos Aires is in the same latitude 
as Cape Town, Africa. The region from the estuary 
of the Rio de la Plata to the outlying foothills of the 
Andes, a territory about six hundred miles square, is 
like our South, as the heat is great only during the 
middle of summer and the winter cold is moderate. The 
most northern and southern parts have a very rainy 
summer season. In the western and central portions 
there is little rain. This especially applies to the 
western section, so that much of this region is too dry 
to be cultivated except by irrigation. The streams 
descending from the Andean snows provide water. 
Though many of them are lost in the arid ground be- 
fore reaching the sea, yet they supply sufficient mois- 
ture below the surface, so that wells may be success- 
fully dug. 

The population of the Argentine has increased from 
3,956,060 in the census year of 1895 to an estimated 
population of at least nine million. The Argentine, 
from the standpoint of climate and soil, is said to pre- 
sent the most nearly perfect area that the world 
contains for the production of wheat, corn, oats, and 
meat products. Evidence of this is seen in the rapid 
growth in the cultivated area of the country, which 
has increased from about thirteen million acres in 1896 
to the present total of about sixty million acres, or 
over three hundred per cent. The progress made in 



218 THE FUTURE OF SOUTH AMERICA 

the last ten years gives an interesting insight into the 
possibilities of future growth. During this period, the 
cultivated area has doubled, and the value of the four 
principal Argentine crops (wheat, corn, oats, and flax), 
estimated at the average export prices, has increased 
fifty-nine per cent. The Argentine probably produces 
per capita a greater excess of foodstuffs over its own 
needs than any other country in the world. 

Buenos Aires, the capital of Argentina, with its pop- 
ulation of over a million and a half, is the largest 
Spanish city in the world, the largest city in South 
America, and the fourth largest in the Western Hemi- 
sphere. Of every five people in the republic, one lives 
in the capital city. This city, which has made such a 
wonderful growth as to attract the attention of the 
whole world, was founded in 1536 by Pedro Mendoza. 
It was soon captured by the Indians, but later recap- 
tured by the Spaniards. It was taken by the English, 
but was held by them only a short time. In 1810 the 
Argentine achieved its independence; but an era of 
civil war followed, and it was not until the fall of the 
dictator Rosas, in 1852, that anything like real prog- 
ress began. 

The estuary or bay of the Rio de la Plata is about two 
hundred miles long from the point where it is formed 
by the junction of the great river Uruguay and the 
larger Parana, to its entrance into the Atlantic. Buenos 
Aires is one hundred and fifty miles up this estuary, 
which is twenty-eight miles wide opposite the city. 
Not much of the city can be seen from the wharves, 
for it lies only thirty feet above high-water mark, 
and for miles beyond it there is nothing but flat prairie, 
with not even a rock to break the monotony. Previous 




CO 

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P 

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ARGENTINA 219 

to 1895, seagoing vessels had to lie several miles off 
Buenos Aires, discharging their cargoes by lighters, 
and their passengers either by small boats or by curious, 
high-wheeled carts which carried them through shallow 
water to the shore. With great enterprise and courage, 
a long, deep channel, which is kept open by constant 
dredging, has been dug, so that large steamers can 
now come to the very edge of the city. In fact, the 
city has the finest system of artificial docks that I 
have ever seen. 

Whether or not the cleanliness of the city is due to 
the fact that it lies in the temperate zone, I do not 
know. Certainly Buenos Aires (good air) is well 
named, for the air is clear and keen. There are no 
large factories to pollute it with soft coal smoke. The 
streets are narrow and crowded in the business parts, 
but broader in the newer portions, which are well laid 
out. The question of transportation is solved by as 
good a car service as is to be found in any North 
American city, having about four hundred and fifty 
miles of surface track, and under the principal avenue 
is a subway extending two miles. Eight miles more of 
underground road are planned, and some of it is already 
under construction. The number of passengers carried 
in one year approximates four hundred million. There 
are over fifty-three thousand registered vehicles, of 
which nearly four thousand are private motor cars, and 
two thousand motor carriages for hire. More than four 
hundred newspapers are published regularly in Buenos 
Aires, a hundred of them representing the foreign col- 
onies. The water supply, electric and gas facilities, the 
police force and fire department, the various intellectual 
factors, like museums, art galleries, public schools, and 



220 THE FUTURE OF SOUTH AMERICA 

libraries, as well as such social factors as clubs, asso- 
ciations, and societies, are all present and developed 
according to the modern type. The hotels are equipped 
to receive the most exacting class of the traveling 
public, and other conveniences for the transient or 
permanent resident place the city on a par with the 
best capitals of Europe and North America. 

Though Buenos Aires is often described as a cosmo- 
politan place, its population does not include so many 
nationalities as would be found in most large cities of 
our own country. There are English and German col- 
onies, composed mostly of business and railway men, 
each keeping rather exclusively to itself as far as social 
relations are concerned. Of the so-called Latin element, 
probably about half is Argentine born. 

The parks of Buenos Aires especially appealed to me. 
They are well laid out and exceedingly well kept. The 
park Palermo, with its rose garden and tea house, is 
most fascinating; while the "Zoo" and the Botanical 
Gardens are likewise very interesting. The city, al- 
though not so large as Paris, and hence not so spectacu- 
lar, is newer and fresher. At first glance, I was more 
impressed by Buenos Aires than by any of the old or 
new-world cities that I have ever visited. 

The commerce of the whole Argentine Republic 
centers in Buenos Aires, and it is a common sight to see 
scores and scores of merchant vessels flying the flags 
of all important countries, except the United States, 
loading and unloading along its waterfront. Right here 
it may be well to remark that before our Civil War 
there were in this harbor six hundred vessels carrying 
our flag, or more than double the number from all 
other nations combined. In those days, the influence 



ARGENTINA 221 

of our people over the commerce of South America 
was predominant. A Pennsylvanian, William Wheel- 
wright, was looked upon as its father. Would that he 
might be resurrected! A writer comments on the fact 
that in 1910, out of the many thousands of ships that 
transferred cargoes here, only four bore the Stars and 
Stripes. 

The docks, designed by a celebrated American engi- 
neer, are most impressive, consisting of rows of massive 
masonry and cement wharves, behind which spreads a 
network of railway lines. The docks are arranged, 
not in a series of slips, as along the water front in New 
York City, but like basins, so that vessels can moor in 
them on all four sides. The cargoes are unloaded by 
enormous cranes, and cars are operated directly along- 
side. Yet, extensive as is this docking system, it is 
already inadequate, for there usually are a number of 
ships lying at anchor outside in the river, waiting their 
turn for a berth. Immense warehouses and giant grain 
elevators add to the impressiveness of the scene. Even 
these facilities are not sufficient, and there is talk of 
enlarging the capacity of La Plata and Bahia Blanca 
to relieve the congestion. In fact, Argentina now has 
three additional growing ports, Rosario, Bahia Blanca, 
and La Plata. All these are fine cities. One who thinks 
Buenos Aires is the only city of Argentina is very much 
mistaken. 

Skyscrapers are not common in these cities of the 
south, though a few tend in that direction, and several 
boast of fifteen stories. Many public buildings are five 
stories, or even more, as there is not the danger from 
earthquakes here that there is in the West Coast coun- 
tries. Many of the dwellings are low, and in the out- 



222 THE FUTURE OF SOUTH AMERICA 

skirts, which may be called the slums, the homes are 
little better than shanties — a great contrast to the 
rest of the well-built, well-lighted, and very clean city. 

Buenos Aires has impressed me as quite the gayest 
city in the world. Also it is an expensive city in which 
to live. As a matter of fact, South America is no 
place for poor people, and Buenos Aires least of all. 
Rooms in the best hotels are six dollars a day and up- 
ward, with meals correspondingly high. Even respect- 
able boarding-houses charge four dollars a day for 
room and board. A little restaurant in one of the parks 
charged three pesos ($1.32) for afternoon tea! 

I asked an American who had lived in Buenos Aires 
for years what impressed him most about the city, and 
he replied: 

"I have been greatly surprised by the great paradoxi- 
cal growth of ostentation and socialism in the city. 
The wealthy people are greatly given to artificial show 
and luxurious display, while the working people are the 
most openly socialistic of any city in the world." 

Whether or not this impression is justified, I cannot 
say, but I am impressed with the idea that one seems to 
breed the other — ostentation and socialism. The 
people of Buenos Aires seem to be unable to secure their 
pleasure through natural absorption, as do the people 
of London, Vienna, and even Paris. Buenos Aires re- 
minds me of New York and Berlin more than any other 
cities. The pleasures of these cities are of an artificial 
kind. 

Horse racing seems to be the most popular recreation, 
and the Jockey Club is the most exclusive social organi- 
zation in the city. Races occur twice a week from 
March through December, the greatest stakes being 



ARGENTINA 223 

raced for in September and October. The annual 
National Prize amounts to over twenty-five thousand 
dollars, and the sale of tickets for this race reaches 
three hundred and fifty thousand dollars. Betting is 
popular, and at one dollar a ticket, twenty million bets 
are made a year. All the races are a great society 
event. 

The parks are favorite gathering places for the people 
of fashion. The great shaded avenues are thronged 
with carriages, in which the Argentine women may sit 
to display their gowns and jewels. I have never seen 
such a procession of fine carriages, horses, and auto- 
mobiles. The people of Argentina are exceedingly fond 
of music, and their opera is one of the most distinguished 
anywhere. The Opera House, the most magnificent in 
either North or South America, cost ten million dollars. 

Buenos Aires can boast of one of the greatest of the 
world's newspapers, La Prensa. It is housed in a mag- 
nificent five-story building, and there is no newspaper 
building anywhere which compares with it. The paper 
is printed in Spanish, and has a circulation of one hun- 
dred and twenty thousand, but its advertising rates 
are very high, and thus it is enabled to do things un- 
dreamed of by our papers. The building contains, in 
addition to the printing plant and offices, a lecture room, 
a large audience hall, a library, reading rooms, baths, 
cafes, music rooms, and apartments where visitors are 
entertained. There is a free dispensary for those who 
are too poor to pay for a physician, and the services of 
a lawyer are also * furnished free. 

Buenos Aires also has La Nation, which is perhaps 
the most independent newspaper in South America, its 
proprietor, Senor Georg Mitti, taking personal charge 



224 THE FUTURE OF SOUTH AMERICA 

of its direction. Outside of these two papers, and one 
each in Santiago and Rio Janeiro, there are not many 
large newspapers in South America. There are, how- 
ever, numerous smaller papers, and nearly all are 
exceedingly well arranged and carefully edited. 

The capitol building in Buenos Aires is very much 
like our own at Washington in general appearance, and 
in front of it is an extensive plaza. This plaza was con- 
structed in 1910 for the celebration of the centenary of 
the republic, and completed in the short space of ninety 
days. In that time, four solid blocks of buildings were 
torn down; ground was filled in, leveled, and grassed; 
walks were laid ; trees, shrubs, and flowers were planted ; 
fountains with colored waters, obelisks, candelabra, and 
statues erected at a cost of five million dollars; and 
everything was ready to receive the guests at the cele- 
bration. 

Much is said about the people of South America 
being slow. Certainly "manana" seems to be the pass- 
word of all the countries excepting Argentina, Chile, 
and southern Brazil. It is, however, a business error to 
consider all the Latin-American countries as having 
the same characteristics. They are naturally divided 
into two groups — the Temperate Group and the Tropi- 
cal Group. To the former belong Argentina, Chile, and 
southern Brazil; and in these countries are the oppor- 
tunities for money making. In fact, the first lesson for 
the young American business man to learn is that dur- 
ing his lifetime the big opportunities will be in the 
temperate zones. 

Thirty-four miles by rail from Buenos Aires down the 
river is La Plata, a city of more than one hundred thou- 
sand people, and capital of the province or State of 



ARGENTINA 225 

Buenos Aires. It is a made-to-order city, like our own 
Washington, and is well planned with rectangular 
blocks, also many diagonal boulevards, and with parks 
and plazas. On account of the wonderful growth of 
Buenos Aires, so near, the development of La Plata 
has not equaled expectations. It possesses, however, 
two claims to consideration: first, as the political 
center of the largest and wealthiest province of the 
republic; and second, as a great transshipping port, 
both for handling trade originating in the province 
and for accommodating ships debarred from ,the port 
of Buenos Aires by their depth. The city itself is five 
miles from its port, which is situated on a small arm of 
the Rio de la Plata. (By the way, plata means " silver, " 
so that we may call this, in English, the Silver River.) 
Another semi-port is Mar del Plata, called the Newport 
of South America. This is an extremely fashionable and 
expensive seaside resort about two hundred and fifty 
miles from Buenos Aires, having every up-to-date 
requisite for such a resort for the wealthy residents of 
the cities — all on the grandest scale. 

Another of the rapidly growing ports is Bahia Blanca. 
This is about three hundred miles south of Buenos 
Aires, and is the outlet for northern Patagonia. It has 
a population of fifty thousand. Here great docks and 
elevators have been built, as in the other cities. Bahia 
Blanca is becoming an important export center for 
grains, cattle, sheep, and their products. Its climate 
is more temperate than that of any of the other large 
cities. In fact, the region thereabout is said to be too 
cool for raising good corn. 

But of all the ports, Rosario is next in importance to 
Buenos Aires. This is a city about 189 miles up the 



226 THE FUTURE OF SOUTH AMERICA 

Parana River from Buenos Aires, and leads that port 
in the export of grain. It has a population of probably 
two hundred and fifty thousand, and has fine public 
buildings, beautiful stores, and parks. On the map, 
Rosario seems to be an inland city, but it really has all 
the appearance of a great port. There are large docks, 
elevators, railway terminals, and everything that goes 
with a big city. In fact, Rosario bears the same rela- 
tion, in many ways, to Buenos Aires that Chicago 
bears to New York. Large ships go direct from Rosa- 
rio, loaded with grain and cattle, to all the important 
ports of Europe. Being inland, the city is hotter in 
summer and cooler in winter than is Buenos Aires; 
however, the climate is healthful, and the people have 
considerable energy. In many ways, Rosario presents 
as good opportunities for making money as any city in 
Argentina. 

In the extreme west, toward Chile, Mendoza is the 
chief city of importance, about six hundred and fifty 
miles from Buenos Aires. It was founded by Mendoza 
in the middle of the sixteenth century, and was quite a 
flourishing place when, in 1861, it was suddenly de- 
stroyed by an earthquake, causing a loss of life of from 
ten to fifteen thousand. Now there are two cities, the 
older, and the newer settlement of forty-five thousand 
inhabitants, with fine public buildings and a profusion 
of trees bordering its wide, clean, and well-paved streets. 
Irrigation is easy, from the Mendoza and two smaller 
streams, and has been skillfully used, not only to beau- 
tify the city, but to render fertile a large tract of land 
around it. There are streams running even along some 
of the streets, and the region is especially suited for the 
culture of the grape. Great fortunes have been made 



ARGENTINA 227 

in these vineyards and many opportunities still exist. 
It is said that an economical Italian family can live on 
the returns from a two and one half acre tract of land. 
Wine making is the chief industry, and some of the wines 
from here have received many medals at European ex- 
positions. Most of the workmen, as well as the proprie- 
tors, are Italians, and they have modern and scientific 
methods and appliances. The railroad from here to 
Buenos Aires, a distance of six hundred and fifty miles, 
runs for hundreds of miles without a curve or a rise or 
a bridge. This is possibly the widest perfectly level 
plain in the world. 

Another inland city is Santa Fe, the capital and 
center of the province of Santa Fe, which is one of the 
richest of the Argentine provinces. The city has a pop- 
ulation of about forty-eight thousand. The price of 
good land here is about forty dollars an acre, compared 
with twenty dollars an acre, its price back of Bahia 
Blanca, and seventy-five dollars an acre, the price 
at which it sells within a hundred miles of Buenos 
Aires. 

I gave considerable attention while in Buenos Aires 
to the study of land values. I found that in 1907-1909 
lands were booming, and prices were higher than exist 
in the United States. Since then, there has been a 
drop of thirty to forty per cent., so that prices now — 
although perhaps not low — are reasonable. In fact, 
I believe that if a man with capital is willing to go to 
Argentina and live, he would do well to invest in land. 
Real estate and mortgages are still the standard in- 
vestments of the Argentines. They buy no stocks, and 
the only bonds which appeal to them are the six per 
cent, cedulas, which are the mortgage loan bonds of the 



228 THE FUTURE OF SOUTH AMERICA 

government bank. These cedulas often offer one of the 
best opportunities for making money in Argentina. 

A fine side trip from Buenos Aires is up the Parana 
and Paraguay rivers. One may travel all the way to 
Asuncion, the capital of Paraguay, a week's trip, in the 
same commodious steamer, or may go partly by rail. 
The river is so wide that for nearly the whole journey 
only one bank is visible. Some people visit the great 
Iguassu Falls on the Parana. In order to get there now, 
one must use small boats, or ride mule back, but good 
roads are in building, and it would not be surprising 
if automobiles reached the falls before many years. 
From these falls, one may see three countries, as they 
are located near the point where Argentina, Paraguay, 
and Brazil meet. They are fifty feet higher than Niag- 
ara, have a lateral extent twelve hundred and fifty 
feet greater, and are in the midst of a primeval forest. 

The exports of Argentina consist of cattle, hides, 
sheep, wool, and agricultural products, especially wheat, 
corn, and linseed. For the meats, there are immense 
freezing plants in Buenos Aires, one of which has sixty 
miles of ammonia pipe. The great slaughter houses 
have all the most modern humane methods in use. 

In forming an estimate of the present and prospective 
resources of Argentina, it is necessary to realize that 
the country possesses four elemental conditions of 
national greatness, namely, wealth of fertile territory, 
giving power of production; wealth of seacoast, giving 
power of distribution; a temperate climate; and an 
industrious people. Owing to the length of the coun- 
try, it has a varied climate suited to the production of a 
long list of commodities for which there is a constant 
and growing demand all over the world. On the other 



ARGENTINA 229 

hand, there are not great extremes of heat and cold, for 
the nearness of the ocean exerts a tempering influence. 
The industrious trait in the people is due to the fact 
that the country has been settled largely by a class of 
foreigners noted for frugality and industry, sixty per 
cent, of the immigration into the Argentine having been 
from Italy. In addition to the natural advantages, there 
has been a great influx of foreign capital. In spite of the 
fact that some of these investments may have been 
unwise, yet from the Argentine standpoint such invest- 
ments have been beneficial. The facilities produced by 
such capital have remained in the republic, and have 
become part of "the tools of trade by which the people 
may reach a higher plane of development and a greater 
volume of production." 

The first impression received by the close student of 
conditions is one of surprise that so small a proportion 
of the natural resources has yet been exploited. For 
instance, only about one twentieth of the area avail- 
able for crops is as yet under tillage. To balance this, 
in a measure, we find greater proportionate develop- 
ment in certain provinces where wealth and energy 
have concentrated, as for instance in Buenos Aires. 
If other sections can be granted equal loans by capital- 
ists, Argentina may surely be expected to take very 
high rank among the producing and exporting countries 
of the world. 

Farmers here are perhaps more generally prosper- 
ous than in any other part of the world, yet they have 
two enemies, either of which may ruin the crops and 
take away all the profits for the year. One is drought, 
for a rainfall below the average, in a country where the 
normal is barely sufficient, means scanty crops and a 



230 THE FUTURE OF SOUTH AMERICA 

loss of cattle. The other danger is from the locusts, 
which sometimes come in such great swarms as to be 
irresistible. The newspapers herald their approach, so 
that all may try to fight them. It is possible to do 
something to check them when they are on the ground, 
but when in flight nothing can stop them. 

Although twenty years ago the cattle products 
amounted to the largest total, and agriculture came 
second, in the proportion of about two to one, yet now 
these two industries have changed places. The change 
is due in large measure to the opening up of the coun- 
try by the numerous railroads and the consequent 
bringing under cultivation of large tracts of land either 
formerly used for grazing or not settled at all. In each 
of the three great agricultural products — wheat, corn, 
and linseed — Argentina is now in the front rank of pro- 
ducing countries. Great quantities of alfalfa, tobacco, 
rice, grapes, barley, and oats are also raised, and flax to 
some extent. In the north, or semi-tropical regions, 
sugar, mandarins, oranges, olives, and other fruits are 
grown. Yerba mate, or Paraguay tea, is cultivated in 
considerable quantities. 

Though the increase in livestock has been great, yet 
the limit of the ranching area has not been reached. 
The export of meat received a great stimulus from the 
introduction of systems of cold storage and transport, 
and now an enormous amount of European and North 
American as well as Argentine capital is invested in this 
industry. The Central Produce Market of Buenos Aires 
is the largest hide and wool market in the world. 

The timber regions of the country, mostly in the 
northern part, are rich in structural and cabinet woods. 
In the province of Santiago del Estero, eighty per cent. 




< 

H 

z 
s 
o 






ARGENTINA 231 

of the area is filled with such forests, and over two 
hundred sawmills are now engaged in making lumber. 
The quebracho is the most valuable, and others are 
tipa, titane, curupuy, lignum-vitae, algaroba, and nau- 
dubay. The opening of the forests is greatly assisted 
by the large navigable rivers which penetrate the 
section. 

Mineral resources of the republic must be classed 
rather as probable sources of wealth than as actual con- 
tributors, at present. Although mining was carried on 
in the very early history of the country, and gold, silver, 
copper, and borax have been found in small quantities, 
yet this industry amounts to nothing compared with its 
possibilities in other South American countries. There 
is also a lack of coal, although some claim this to be on 
account of the fact that the railroads have been extended 
rather for the benefit of the agricultural lands than 
into the regions of mineral deposits. Antimony, lead, 
tin, bismuth, and sulphur are also found, and petro- 
leum has lately been discovered in sufficient quanti- 
ties to pay for working. There are four large salt lakes 
in the province of Rio Negro which are now being 
worked extensively by an incorporated salt company. 
However, Argentina has now practically no opportuni- 
ties for money making from mining. 

As regards manufacturing, this industry is carried on 
chiefly along the line of converting raw products of the 
fields into finished and half -finished products. Here 
again the lack of coal and the non-existence of rivers 
furnishing water power of quantity hinders the growth 
of great manufacturing interests. However, some 
native manufacturing of blankets, rugs, ropes, laces, 
embroideries, etc., exists and adds a little to the wealth- 



232 THE FUTURE OF SOUTH AMERICA 

producing power of the people. Ostrich breeding, bee 
culture, and silk culture are also carried on to a limited 
extent, and might prove profitable investments. 

No country has offered greater facilities for the con- 
struction of railways than has Argentina. The surface 
is almost everywhere smooth and level, so that they 
may be quickly and cheaply built, and they radiate from 
the capital, extending to every part of the country ex- 
cept the wilderness of Gran Chaco in the north and the 
wastes of Patagonia in the south. The central part of 
the republic, within three hundred miles of Buenos 
Aires, is as thickly marked with steel rails as is the 
State of Ohio. Thus far, the capital for these railroads 
has come wholly from abroad, and mostly from Eng- 
land. The control of these railroads has therefore given 
the English great help in selling goods and in securing 
the respect of the country. 

It is now believed that England and the other Euro- 
pean countries will not again be able to supply capital 
for some years. This will give the people of the United 
States a great opportunity to secure concessions for 
railway building, the erection of elevators and the like, 
which have heretofore gone to the English. Moreover, 
if we are to gain a foothold in South America, we must 
accept these opportunities. To sell goods in Argentina, 
we must invest money there. I am tired of hearing of 
the opportunities, but of seeing no more evidence on 
the part of our bankers of willingness to invest there. 

In addition to the railways, there are many waterways 
in the navigable rivers of the country. The Parana, 
Paraguay, and Uruguay, with their branches, are deep 
enough for quite large steamers for hundreds of miles. 
South of the Rio de la Plata are the Rio Colorado, Rio 



ARGENTINA 233 

Negro, Chubut, Deseado, and others, the largest being 
the Rio Negro, which is navigable for six hundred 
miles from the coast. There are regular coast lines from 
Buenos Aires to many of these river cities. Austrian, 
Belgian, Brazilian, Spanish, British, Danish, Dutch, 
French, German, Italian, and Swedish steamers arrive 
and depart regularly from the ports of Argentina to all 
quarters of the earth. There are fifty lines with agen- 
cies in Buenos Aires. During an average year, more 
than one hundred and thirty-five thousand vessels reg- 
ister at all ports of the republic, carrying fifty million 
tons, of which forty thousand vessels with twenty 
million tons usually report at Buenos Aires. Regular 
passenger service is maintained to the various ports of 
Europe, and steamers arrive or leave several times a 
week. To New York, while there are not so many 
steamers, opportunity is offered at least once in a fort- 
night for the traveler to take a direct boat. Few, how- 
ever, carry the American flag; and until 1914, no 
passenger boats whatever carried the American flag 
between the United States and Argentina. 

There can be no more logical argument in support of 
Argentina's claim to commercial importance than the 
fact that its foreign trade, exports and imports, amounts 
in all to the magnificent annual total of over nine hun- 
dred million dollars. The cities of the interior are 
growing rapidly, and there is everywhere a demand for 
capital to give these towns modern advantages. The 
amount of money required, not only to do this, but 
also to improve the vast possibilities of her plains and 
the mineral wealth of her mountains, should be supplied 
in a considerable part by the United States. Money is 
wanted for the establishment of banks; for the floating 



234 THE FUTURE OF SOUTH AMERICA 

of government and industrial loans; for the building 
and extending of railroads; for the construction of elec- 
tric, rail, and street-car lines; for electric-lighting 
plants, water works, sewage systems; and for many 
other things that combine to make a general onward 
movement for Argentina. Moreover, all these things 
offer good opportunities for making money, if one will 
work conservatively, and with good people. 

In the chapters relating to the West Coast, it was 
suggested that the great handicap of that region is the 
people. Colombia, Ecuador, and perhaps Venezuela 
cannot amount to much until they have an entirely dif- 
ferent class of inhabitants. Peru, and even Chile, are 
greatly in need of immigration. The greatest resources 
in the world are useless without brains, energy, and 
ambition to work them. 

The people of Argentina are progressive and honest. 
Although they number only about the population of 
New York State, they are an asset of the country in- 
stead of a liability. Hence, when considering going to 
Argentina, do not worry about the people. The Argen- 
tines are our equals. Don't forget this when attempting 
to make money in their country. 

Also remember that we must win their friendship as 
well as their confidence. We must treat them as true 
brothers. They naturally look upon us as foreigners, 
as we look upon the Hebrews, Germans, and Spanish 
who come to our country. Therefore, to win their 
esteem, we must be exceedingly honest and kind. Our 
salesmen must tell the truth. Our catalogues must not 
misrepresent. We must send just the kind of goods 
ordered. Remember that we once had this South 
American trade, but lost it through neglect and mis- 



ARGENTINA 235 

representation. Again the opportunity is open to us 
for making money in Argentina. It is up to us to im- 
prove this opportunity. The first step is to understand 
the people; learn to trust them, serve them, and love 
them. 

Until thirty or forty years ago, the population of 
Argentina was almost entirely of Spanish stock. Then, 
as the pampas were developed, there was need of labor- 
ers, some of whom came from Spain, but more from 
Italy. The latter have come from all parts of their 
country, but those from the north of Italy take to farm 
work, while those from the southern provinces stay in 
the towns, working about the railroads and wharyes. 
As in the United States, the best immigrants are the 
natives of northern Italy, hard-working men who are 
honest and very economical. Many of them come out 
for the harvesting weeks of December, January, Feb- 
ruary, and March, returning home to reap their own 
harvest in the Italian summer and autumn, which is 
six months later. 

The ranch work of catching and taming wild cattle 
and horses, and then of caring for the herds, has devel- 
oped a type of frontiersman similar to the cowboys 
of our western plains. The Gaucho, as he is called, is 
still depended upon to handle the animals. He is an 
expert horseman, never dismounting from his animal, 
except at night, and then sleeping near it. They also 
are said to be honest and sturdy people. The rural 
population consists of two classes, the rich landholders 
and the laborers. There seems to be no middle class 
like our American farmers. When the Argentine col- 
onists came, a century ago, they brought with them the 
idea of European feudalism, and they took as much 



236 THE FUTURE OF SOUTH AMERICA 

land as they wanted, so that the country is one of great 
estates, the average holding even now being about five 
square miles. The descendants of these Spanish, Eng- 
lish, and Irish now hold these great estates. 

There is no doubt that Argentina has the best gov- 
ernment of any of the Latin- American countries. The- 
oretically, it has one of the very best governments in 
the world. There are several features of the Argentine 
constitution and methods which could be adopted with 
great advantage by the people of the United States. 
This applies not only to government, but also to other 
things. For instance, in addition to numbering the 
surface street cars, so as to show quickly the route to 
those who cannot read Spanish, the interior of the 
subway is numbered like the buildings in the streets 
above. This is a very simple but useful plan that could 
be easily adopted by New York, Philadelphia, Boston, 
and other North American cities. 

Certain Englishmen, Germans, and Spaniards in Ar- 
gentina claim that the country's government is unstable 
and full of graft; yet certain of our own countrymen 
there tell a better story. Doubtless the government is 
extravagant, and sometimes careless, from one point of 
view; but from their point of view, we also are very 
extravagant. Doubtless the government of Argentina 
is in the hands of comparatively few people, and is not a 
democracy, as we understand the term. Argentina has 
seen many revolutions, and may witness more in years 
to come. On the other hand, as a student of interna- 
tional affairs once said to me : " Not one tenth as many 
people lose their lives in a South American revolution 
as have been killed in Colorado and other strikes in the 
United States." In fact, the South American actually 



ARGENTINA 237 

feels that his government is more stable than ours. 
Certainly they have shown more self-control regarding 
foreign affairs. The South American revolutions are 
practically bloodless; they do not cost as much, 
nor disturb business as much, as do our presidential 
elections. 

Of course Argentina is a young country, and without 
doubt the govermnent is less stable than most people 
in the United States realize. On the other hand, I am 
sure that the leaders in Argentina appreciate their 
faults and dangers, as well as do their critics, and are 
making great efforts to eradicate them. I do not dare 
to say too much, as I am apt to judge a country by its 
statistical work, and in its statistical work Argentina 
is one of the leaders of the world. However, I must say 
that the limited opportunity given me to study this 
country caused me to believe in its government as well 
as in its people. Certainly it leads all other Latin- 
American countries, and, all things considered, is nearly 
on a par with our own, excepting in connection with 
the integrity of the vote. 

Argentina is one of the five American republics which 
have adopted the federal form of government, the others 
being the United States of America, the United States 
of Brazil, the United Mexican States, and the United 
States of Venezuela. All the other republics of America 
have a unitary form of political organization. The 
constitution of the Argentine nation, dating from 
May 1, 1853, and finally sanctioned September 25, 
1860, with some later emendations, is the one in force. 
It provides for the three usual branches of government 
— legislative, executive, and judicial. The legislative 
power lies in the National Congress, consisting of the 



238 THE FUTURE OF SOUTH AMERICA 

Senate and Chamber of Deputies, the former with 
thirty, the latter with one hundred and twenty members. 
Senators are elected by the legislatures of the provinces 
(States) and, in the federal district, by a special body 
of electors; two from each province and two from the 
federal district; their term is for nine years, one third 
retiring — selection being made by lot — every three 
years; there is a property qualification attached to the 
senatorship. Deputies are elected by direct popular 
vote, one for every thirty-three thousand inhabitants, 
for a term of four years, the chamber being removed 
by halves every two years. 

The President of the Republic of Argentina and the 
Vice-President are elected indirectly, as in the United 
States of America, for a term of six years, neither being 
eligible for an immediately succeeding term. The 
Vice-President is the presiding officer of the Senate. 
The President has a salary of over thirty thousand dol- 
lars gold. In his executive authority he is assisted by 
a cabinet of eight ministers, appointed by him. These 
are: Minister of the Interior; Minister of Foreign 
Affairs; Minister of the Treasury; Minister of Justice 
and Public Instruction; Minister of War; Minister of 
Marine; Minister of Agriculture; Minister of Public 
Works. 

There is not so much that is romantic and exciting 
about the history of this southern republic as was con- 
nected with the conquests of Pizarro in Peru. The 
Spanish navigator, Juan de Solis, in search of a passage 
to the Pacific Ocean, was the first European to discover 
Rio de la Plata, in the year 1516. Sebastian Cabot en- 
tered the river in 1525, and gave it the name it still 
retains. The viceroy alty of La Plata (then including 



ARGENTINA 239 

Argentina, Bolivia, Paraguay, and Uruguay of to-day) 
was denned in 1776, its first viceroy being Pedro de 
Zeballos, appointed in 1777. The Declaration of Inde- 
pendence by the people of Buenos Aires was made on 
May 25, 1810, three great leaders in the movement 
being General San Martin, General Belgrano, and Ad- 
miral Brown. A congress held July 9, 1816, at Tucu- 
man, declared the independence of the "Provincias 
Unidas del Rio de la Plata" (United Provinces of the 
Plata River). In 1860 the country adopted the name 
by which it is now known, "La Nacion Argentina." 

Merchants disagree as to the question of South Amer- 
ican credits; that is, whether or not our manufacturers 
will get paid for goods which they ship there. There is 
no question that the demand exists in South America 
for our manufactured goods, and that an assured supply 
of such goods exists in this country, which we could 
easily ship down there; but there seems to be much 
doubt as to the credit situation in South America. The 
following statement by an Argentina merchant illus- 
trates their point of view: 

"Before your people from the States can hope to 
secure much more business down here, you must 
either change your methods of doing business or else 
start banks in South America. Your manufacturers 
are in the habit of simply manufacturing. They send 
customers of their own country around the corner to 
get their banking done. This works well in a country 
like yours, with over twenty thousand banks, and where 
there is sure to be a bank around every corner. Here 
in South America, however, business is done in a differ- 
ent way. The great English, German, and French 
manufacturers are both merchants and bankers. They 



240 THE FUTURE OF SOUTH AMERICA 

have both sold us the goods and have given us the bank- 
ing facilities to buy these goods. 

"It makes us tired down here to have you continually 
talking about our demands for long credits. We don't 
ask so much credit as do your customers in the States. 
Moreover, we are much more careful to meet our drafts 
and other obligations when due than are your customers 
to pay their notes at your home banks. The difference 
is right here. Assume that you have a mill in Massa- 
chusetts, and I am a Boston jobber to whom you desire 
to sell goods. I ask you what are your terms, and you 
tell me thirty days. I reply that I cannot turn over 
the goods in thirty days, but that it will take six months. 
Do you refuse to sell me? No! You send me to a bank 
of which you are a director, and they loan me for six 
months the necessary money to buy goods and pay 
you within thirty days. To do business down here 
you must start banks which will do for us in Buenos 
Aires what your Boston banks do for your Boston cus- 
tomers. In addition, let me tell you that it offends us 
to be told that our credit is not worthy of such accom- 
modation. We don't need North American banks sim- 
ply to do a foreign exchange business. We want them 
to finance our purchases of North American goods. 

"Of course, the greatest profit to you would be to fol- 
low the English and German system and allow us the 
credit direct, adding to your price accordingly, but 
either method would be satisfactory to us. Only don't 
be so stupid as to think that the English and Germans 
do not charge us for extending such credit. With 
money rates from twelve to eighteen per cent, you may 
be sure that our merchants are willing to pay consider- 
ably more for goods on long credit. Of course we dare 



ARGENTINA 241 

not make you a higher offer for fear you '11 be scared to 
sell us at all." 

Another view of the trade question is represented by 
the following statement from a leading merchant: 

"You see that the English and Germans understand 
foreign trade. It is an art with them the same as the 
killing of hogs and the making of shoes is an art with 
the people of your country. The Germans even have 
separate colleges in which to train men for foreign trade, 
while the English inherit a love for oversea commerce. 
Your people have been so surrounded by natural re- 
sources and high tariffs that they have become actu- 
ally stupid as regards foreign trade. The English and 
German firms both try to please us and also to finance 
our purchases." 

The President of Argentina, when I visited South 
America in 1915, was Senor Victorio de la Plaza, a man 
who has traveled extensively and who lived in London 
for many years. He is the owner of a great estancia, or 
ranch, in Argentina, which makes him a multi-million- 
aire. When we, of the United States, speak of men of 
great wealth, we think of mills, factories, and railroads, 
but it is different in Argentina. There the great 
" trusts" are land trusts, and the captains of industry 
are ranch owners. 

The Government House at Buenos Aires, where I 
met the President, is as fine a palace as exists in Amer- 
ica. The guards and servants are in blue livery, while 
luxury pervades the place. The correspondence and in- 
troductions are extremely formal, yet I was given the 
utmost freedom and no one ventured to suggest what 
I should talk about. 

On being introduced to the President, I began: 



242 THE FUTURE OF SOUTH AMERICA 

"The people of the United States are much interested 
in your great country. They know of its wealth and 
importance, and are anxious to do business here. There 
seems to be, however, a misunderstanding about credits. 
English, French, and even some North American firms 
doing business in your country tell my people at home 
that credits are unstable in Argentina and that it is 
unsafe to invest American capital here. Will you please 
give to my countrymen a statement regarding this ques- 
tion of credit?" 

Whereupon the President squinted his eyes and an- 
swered : 

" Conditions in Argentina are the same as in the newer 
parts of your own country. If a jobbing house in Chi- 
cago desires to open a branch house in Texas, it must 
take chances. There is no guarantee by any one that 
there will not be some losses at first. The best cus- 
tomers in Texas will naturally remain with the older and 
more established firms. A new firm in any locality 
must always start with the poorer customers and grad- 
ually obtain the better ones. When a New England 
manufacturing concern starts a new mill in your South, 
it expects to run at a loss for a while; neither your gov- 
ernment nor your State will guarantee the securities. 
Conditions are no better, and no worse, in Argentina 
than in the United States, considering the ages of the 
two nations. Your merchants must take a certain 
chance and risk; but these are no greater than they 
are continually taking in their own country." 

After leaving the President, it occurred to me to 
obtain the failure statistics of Argentina, and compare 
them with those of the United States. This comparison 
is shown by the following: 



ARGENTINA 243 

Failures in United States Failures in Argentina 

1910 $195,223,045 $18,576,125 

1911 ■ . 189,358,591 26,638,125 

1912 202,085,974 34,619,774 

1913 282,232,584 72,530,307 

1914 344,895,431 180,836,061 

Total for 5 years . . $1,213,795,625 $333,200,392 

Average for 1 year . 242,759,125 66,640,078 

Failure in dollars per capita .... $2.55 $7.40 

These figures suggest that perhaps the President of 
Argentina is a better politician than statistician. They 
certainly show that under the present unsatisfactory 
Argentine laws, failures are very common and risks 
abnormally large. 

I think our able United States Commercial Attache 
expressed the situation very clearly and fairly when he 
said to me, after I had told him what the President 
had replied: 

"There are great opportunities here, yet nearly all 
have been tapped; there ace many chances to make 
money here, but nearly all have been tried. One can- 
not come to Argentina and pick up gold in the streets. 
Time and money must first be spent on development 
work before fruit can be gathered. Moreover, the 
fruit will not gather itself. Some one must do the 
picking. Also, if the fruit is to keep, it must be picked 
carefully and packed honestly." 

This President of Argentina believes that the real 
question is whether or not the merchants and manu- 
facturers of the United States are willing to do their 
part and give the same attention, capital, and treat- 
ment to trade in South America as to trade in North 
America. If they will, the problem is largely solved, 



244 THE FUTURE OF SOUTH AMERICA 

but otherwise not. The old rule, "Never venture, 
never win," applies equally to both continents. The 
reason why the Germans and Italians have done well 
in Argentina is because they are willing to venture in 
order to win. First, they take a venture by going to 
settle there; they do not just make a flying visit as we 
do. Secondly, they take a venture by investing their 
money there; they are not suspicious of the Argen- 
tines as are we. Finally, they venture by marrying an 
Argentine girl — and this last venture is the most im- 
portant of all. We North Americans will never succeed 
there until we are willing to intermarry with them. 
When our boys will marry their girls, and our girls will 
marry their boys — then we shall be recognized as 
their friends. This is the first real venture we must 
make. Some say that commerce follows the flag; 
others say that it follows the banks; but there they 
believe it follows love and marriage. 

I next asked the President what the people of the 
United States must do in order to secure a foothold in 
Argentina, and he answered at once: 

"Your countrymen must invest capital down here 
if they intend to compete with the English and other 
nations. Now, we need capital. We are a very rapidly 
growing country, and we have many uses for money. 
It is natural that we should feel the most indebted to 
the people who have supplied us with the most capital. 
Up to the present time, England has led in this respect. 
Not only has she supplied us with many times more 
money than has any other nation, but she has furnished 
to us more than she has to any other nation. Statistics 
suggest that England prefers our securities to those of 
even your own country. 



ARGENTINA 245 

"The following figures," said the President, "cover- 
ing one half of a year, show you why we love England. 
These figures show the destination of new capital 
issued in the United Kingdom during six months; and 
the proportions for any other six months will show up 
the same.' 

Argentina $64,046,000 

Russia 61,220,500 

United States 43,995,500 

Brazil 26,507,500 

Belgium 24,512,500 

Austria Hungary 20,881,000 

Mexico 9,115,000 

Chile 8,725,500 

Greece ; 7,781,500 

China 3,500,000 

Sweden 2,442,500 

Philippine Islands 1,800,000 

Turkey 970,000 

Cuba 200,000 

Dutch East Indies 163,000 

Germany and possessions 63,000 

Other European countries 3,797,000 

Other South American Republics 6,211,000 

"The English have ventured, and have won. If you 
will venture, you can win likewise. But you can never 
win by refusing to buy Argentine securities, by refrain- 
ing from investing money in Argentina, or by asking 
for cash in advance." 

Then the President checked himself, and stopped 
talking. I rather think he wanted to criticise us for 
demanding cash in advance, and then shipping any 
old merchandise to suit our fancy — poorly packed, 
wrongly addressed, and fisted in yards and inches, 1 

1 The Argentine children are taught the metric system of 
weights and measures, which is almost universally used through- 
out the world, with the exception of England, United States, 



246 THE FUTURE OF SOUTH AMERICA 

which are as Greek to the Argentines, but he refrained 
from any criticism. 

The President referred only to the English. I have 
been told that he is partial to the English, preferring 
them to any other foreign people. Statistics, however, 
show that during the past few years the Germans have 
also invested large sums in Argentina, and are entitled 
to as much credit as the English. The following story, 
told to me by one of Argentina's leading bankers, illus- 
trates German methods: 

Some people secured a franchise for a street railway 
in an important Argentine city. Knowing of our New 
York and Philadelphia traction magnates, the promo- 
ters offered the proposition to capitalists in those cities. 
The United States financiers, however, had never 
been to Argentina. They laughed at the idea of this 
South American city wanting such a system, so they 
turned it down. The Argentines then appealed to Ger- 
many. The Germans accepted the offer at once. They 
not only built the property, but they built it quickly 
and finely. It is the most attractive system that I ever 
have seen. It is far ahead of anything in New York, 
Philadelphia, Boston, or any other large North Ameri- 
can city. It is equipped with German machinery. It 
is a great big advertisement for Germany every day. 
It has resulted in selling scores of millions of dollars 
worth of other German electrical machinery. Even 
our own United States corporations are now buying 
their electrical machinery for use in South America 
from Germans. The Germans ventured, and they won. 

Turkey, and China. Why we do not discard yards, inches, 
bushels, and quarts, and substitute the decimal metric system 
therefor, is incomprehensible to all foreign buyers. 



ARGENTINA 247 

I then took the liberty of going a step farther and of 
speaking frankly to the President as follows: 

"Mr. President, I am told that the real trouble with 
Argentine credits lies not with Argentina, but rather 
is due to the fact that we North Americans are not feared 
by your people as are the English and Germans. For 
instance, I am told that if one of your merchants owes 
fifteen thousand pounds in equal amounts to an Eng- 
lishman, a German, and a United States citizen, and 
the Argentine has only ten thousand pounds, he will 
pay the Englishman first and get his cash discount, 
and the German next. The result is that he has no 
money left with which to pay my countryman. Is there 
any truth in such a report as this?" 

Of course the President did not answer my question, 
and it was not to be expected that he would. I was 
told, however, by others connected with the govern- 
ment that if he had answered, he would have ac- 
knowledged that it is the "big stick" policy which 
tells. This brings up a very interesting question. Let 
me explain. 

It is generally admitted that before we can develop 
a rich Latin-American trade we must do two things, 
viz.: 

1. Secure protection to American capital invested 
in Latin America in order that we may safely extend 
credits and organize banks. 

2. Secure freedom from dependence on ships, rail- 
roads, and cables of our competitors in order that we 
may get equal and just treatment. 

From talks with financiers I am convinced that these 
two things can be secured in only one of two ways, 
either by adopting the big stick and continuous foreign 



248 THE FUTURE OF SOUTH AMERICA 

policy system of the European governments, or by in- 
sisting that banking, transportation, cables, etc., used 
for international trade shall be under international 
control and protection. This does not mean that the 
nations of the world need unite in any sort of a political 
alliance, but simply that some inter-nation be devised 
whereby banks, ships, etc., can be operated under an 
inter-nation trade flag, if the parties interested so de- 
sire. 

Of course, the simplest method at the moment would 
be for our government to adopt the big stick and contin- 
uous foreign policy, as practised by European govern- 
ments; but certainly this is not a democratic method, 
and the leading South American statesmen do not be- 
lieve our people will ever stand for it. If this is true, 
it is a sure thing that we shall be at a distinct disadvan- 
tage in playing the game with the European nations 
until the other alternative — that is, international 
control and protection for international investments 
and trade — is put into operation. 

I next said: "Mr. President, many people come back 
to the United States and talk about the great money- 
making possibilities down here, but they fail to be 
specific. It is hard to pin them down to definite state- 
ments. Will you please indicate to me along just what 
lines capital can be most advantageously invested here 
at the present time?" 

To this question, the President immediately replied: 

" Argentina is an agricultural country, and is so des- 
tined to be for many years to come. Had we coal or 
water power, it would at once be possible to manu- 
facture here great quantities of shoes, textiles, and other 
things for which we have the raw materials. Under the 



ARGENTINA 249 

circumstances, however, manufacturing will develop 
only very slowly. It is in agriculture and cattle rais- 
ing that the great future of Argentina exists." 

The President then referred me to a pamphlet which 
had just been published in English by the Honor- 
able Ricardo Pillado, Director General of Commerce 
and Industry, which contained a story of Argentina's 
growth and present condition, and in which he says: 

"Among the principal items of Argentina's wealth 
stands forth the meat trade, transformed during the 
last quarter of a century by the energy of the country, 
the improving of its stock, and the change of the primi- 
tive methods of treating the beef which constituted 
the traditional system of three centuries (jerked beef, 
etc.) into the freezing and preserving of meats of the 
finest quality. By the most perfect methods, we get 
the nutritious extracts and other products which are 
the result of our improved industry and latest prog- 
ress. The growth of this branch of activity is shown 
by the fact that in 1885, the year in which the frozen- 
meat system first commenced, all the exports of meat 
in its various forms reached a total of $6,684,945, 
whereas now it has increased to about fifty-five mil- 
lion dollars, that is to say, almost nine times the value 
of the annual sales when this new method was first 
employed. The returns of the four principal agricul- 
tural products are not less interesting." 

In 1904 Argentina exported the following: 

Wheat $66,947,891 

Maize 44,391,196 

Linseed 28,359,923 

Oats 541,973 

$140,240,983 



250 THE FUTURE OF SOUTH AMERICA 

and ten years later — 

Wheat $102,631,143 

Maize 112,292,394 

Linseed 49,910,201 

Oats 20,447,278 



$285,281,016 



Readers must remember that these products have 
been obtained with little care and unscientific methods. 
In fact, I was much interested in a story which Ambas- 
sador Stimson told about a friend of his who has a very 
successful estancia about three hundred miles from 
Buenos Aires. Mr. Stimson asked the man how he 
secured so many more bushels per acre, so much fatter 
cattle, and so much finer fruit than his neighbors. The 
rancher called Mr. Stimson aside, and whispered: 

" Don't say anything about it to my competitors here, 
but I subscribe to an old American agricultural jour- 
nal, and to some of your government reports. They 
keep me posted and give me information which my 
neighbors either do not know about, or else are too 
lazy to apply." 

Again the President referred me to the pamphlet 
just mentioned. With a twinkle in his eye, he said: 

"Look at these statistics. [See p. 251.] Does the 
record of the United States production show any such 
gain as this?" 

I tried to pin him down to telling me of other in- 
dustries than agriculture wherein there are good money- 
making opportunities; but I did not have much luck. 
We could n't understand one another perfectly. He 
seemed to think I wanted him to name some industry 
which the government would subsidize or protect by 



ARGENTINA 



251 



THE DEVELOPMENT OF ARGENTINE AGRICUL- 
TURE, 1896-1913 

Cultivated Areas in Hectares 1 



Years 


Wheat 


Linseed 


Maize 


Lucern 


Other Cul- 
tivations 


Total 


1896 


2,500,000 


360,000 


1,400,000 


800,000 


510,000 


5,570,000 


1897 


2,600,000 


350,000 


1,000,000 


900,000 


522,000 


5,372,000 


1898 


3,200,000 


332,788 


850,000 


1,067,983 


533,000 


5,983,771 


1899 


3,250,000 


355,229 


1,009,000 


1,268,088 


545,000 


6,427,417 


1900 


3,379,749 


607,352 


1,255,346 


1,511,601 


557,000 


7,311,048 


1901 


3,296,066 


782,880 


1,405,796 


1,631,733 


567,000 


7,638.475 


1902 


3,695,343 


1,307,196 


1,801,644 


1,730,163 


580,270 


9,114,616 


1903 


4,420,000 


1,487,000 


2,100,000 


2,172,511 


606.000 


10,685,511 


1904 


4,903,124 


1,082.890 


2,287,040 


2,503,384 


648,000 


11,424,438 


1905 


5,675,293 


1,022,782 


2,717,300 


2,983,643 


682,443 


13,081,461 


1906 


5,592,268 


1,020,715 


2,851,300 


3,537,211 


796,099 


13,797,593 


1907 


5,759,987 


1,391,467 


2,719,260 


3,612,000 


1,129,078 


14,612,792 


190S 


6,063,100 


1,534,300 


2,973,900 


3,687,200 


1,572,063 


15,830,563 


1909 


5,835,500 


1,455,600 


3.005,000 


4,706,530 


3,772,042 


18,775,672 


1910 


6,253,180 


1,503,820 


3,215,350 


5,400,580 


3,994,152 


20,367,082 


1911 


5,897,000 


1,630,000 


3,422,000 


5,630,100 


4,304,589 


21,883,689 


1912 


6,918,450 


1,733,330 


3,830,000 


5,955,000 


4,550,946 


22,897,726 


1913 


6,573,540 


1,779,350 


4,152,000 


6,690,000 


4,896,736 


24,091,626 



1 100 hectares — 3,861 square miles. 



a special tariff. Finally he turned to a statistical re- 
port, and said: 

"I suppose that the greatest opportunities for manu- 
facturing here in Argentina are of the things of which we 
import the most. As you see, this list includes almost 
everything. Whereas probably all the clothes that 
your very able President, Sefior Wilson, is wearing 
to-day were manufactured in the United States, not a 
thing which I have on, from my collar to my shoes, 
was manufactured here in Argentina." 

Although the official figures are very convincing, they 
do not necessarily signify that South America is a 
happy hunting ground either for farmers or others. 



252 THE FUTURE OF SOUTH AMERICA 

Great quantities of cattle and grain may be raised each 
year; but all the profits may go to the railroads, the 
packers, and the commission men. I have heard that 
this is especially true in Argentina, where so many 
of the farmers are renters, and where the railroads 
and other corporations are so free from government 
supervision. Therefore I asked the President this 
question : 

"Mr. President, I have always heard that Argentina 
is a rich man's country; that if one has money, Argen- 
tina is a good place to seek land, but otherwise one is 
better off in Canada or some other country, which favors 
the small farmer. Is this true or not?" 

" There is no doubt," answered the President, "that 
more favorable homestead laws will be passed and that 
the tendency is greatly in favor of a gradual division of 
the land among more farmers. Although the man with- 
out capital has always been protected in the cities — 
where he seems to want to live — perhaps he has not 
been sufficiently cared for when he has gone into the 
country. Attention is continually being given, how- 
ever, to the farmer immigrant, and I think you will 
soon see changes in our land laws." 

I then called to the President's attention the fact 
that so many of the Italians and others who come to 
Argentina for the harvest work, beginning in January, 
return home again in April. (In the United States, the 
proportion of those returning is very small indeed.) 
The President explained this by saying that the Ital- 
ians who come to the United States can gain nothing 
by returning home, since the Italian and North Ameri- 
can summers come at the same time, in July, August, 
and September, The South American summer, how- 



ARGENTINA 253 

ever, comes in January, February, and March, thus 
giving the Italians there the opportunity each year to 
work at gathering the harvest both in their own coun- 
try and in Argentina. 

One day I was entertained by an Italian who had 
come to South America as a common laborer and who 
had become very wealthy through importing machin- 
ery. He " ventured" to the extent of marrying an 
Argentine woman, and has raised two girls and three 
boj^s. One boy has been educated in Leipzig, another 
at Oxford, England, and the third in the United States. 
While we were riding about the country in his beautiful 
high-powered Italian car, he said to me : 

"A great opportunity awaits the two countries, 
Argentina and the United States, to get together on farm 
labor and provide steamship accommodations for trans- 
porting each year in April, when our winter begins, the 
surplus from Argentina to the United States, and from 
the United States back to Argentina in October, when 
your winter commences. This would be a splendid 
thing for both the Americas. Please suggest it wher- 
ever you can." 

" Never venture, never win" applies to almost 
everything you see and every place you visit in Latin 
America; in fact, it applies everywhere and to every- 
thing. Because a thing never has been done, is no 
reason why it should not be done. Moreover, when 
some one attempts to discourage us, he usually has a 
selfish reason. This especially applies to discussions 
concerning the granting of long credits. 

In my opinion, there is more sentiment than finan- 
cial need concerning the whole question of South Amer- 
ican credits. The people of Argentina, Chile, and Brazil 



254 THE FUTURE OF SOUTH AMERICA 

consider themselves our equals; and with an allowance 
for their age, the Argentines certainly are. They are not 
up to us in all things, but they lead us in some things. 
There may be more graft in their national government 
than there is in ours; but their city governments are 
undoubtedly better. 

The park systems of Buenos Aires are the most com- 
plete that I have ever seen. Upon inquiry, I found that 
the Park Commission runs a special training school for 
young men who desire to become park superintend- 
ents, landscape gardeners, and the like. One half of 
the day is given to book-study at the park headquarters, 
and the other half to practical work, such as pruning 
and transplanting trees, planting seeds and seedlings. 
Even Montevideo, across the bay, can teach our cities 
a lesson. It has a fine, long boulevard with a grass plot 
and double street-car tracks in the center. Between 
the tracks is the pole line with the trolley wires hanging 
from brackets on each side, and on top of each pole is a 
big arc light. On each of these poles, about ten feet 
from the ground, is a circular basin of beautiful plants, 
such as geraniums and ivy, on the principle of a win- 
dow-box. Here, also, were flagmen at dangerous street 
crossings where street cars and automobiles might col- 
lide. We think of making steam railroads supply flag- 
men at certain points, but it never occurs to us to have 
the electric roads do likewise and place flagmen at all 
important crossings. 

Owing to the funny stories which tourists tell about 
the " marriage market" in Valparaiso, and some of the 
volunteer fire departments of other West Coast cities, 
we are apt to think that we ourselves are far superior 
to our Chilean and Argentine neighbors. But none of 



ARGENTINA 255 

us should do any bragging. What the most intelligent 
of us know compares with what the most ignorant 
know only as the head of a pin compares with the 
point. When comparing our customs with those of 
South America, I like to think of the old Inca days in 
Peru, before European customs were introduced, when 
every man was compelled to marry before he was 
twenty-five. Then he was given a farm by the State; 
while at death, all he left above a certain amount re- 
verted to the State. 

I am sure that the Argentines are very much hurt 
when we refuse to treat them as equals. They doubt- 
less could pay cash and borrow at their local banks as 
do merchants in the United States if their system were 
so arranged. They have just as much money as have 
our storekeepers; but the Argentine system provides 
for the jobbers to do the financing instead of the local 
banks. This is why there are so few banks in Argen- 
tina and so many jobbers. Hence it greatly hurts their 
pride to have us question their credit, especially when 
it is satisfactory to the English, French, Germans, and 
other people. 

At parting the President said: 

"Extend to your readers for me a hearty invitation 
to visit Argentina. Tell your merchants not to refuse 
us credit until they personally come down here and 
meet us. Tell your manufacturers not to rely upon 
what the competitive manufacturers of other nations 
say about us. Tell your bankers and investors to come 
here while great bargains can be secured and while 
money can be loaned at high interest rates. Call at- 
tention to the fact that there are fewer United States 
citizens in Argentina to-day than were here thirty 



256 



THE FUTURE OF SOUTH AMERICA 



years ago. 
table : 



Permit me to call your attention to this 



Arrival of Immigrants in the Republic from 1857 to 1913 



Arrivals in all 

Italians 2,247,760 

Spaniards 1,420,393 

French 211,608 

Russians 155,285 

Syrians 130,937 

Austrians 85,053 

Germans 59,688 

Britons 53,792 

Swiss 32,504 

Portuguese .... 24,997 

Belgians 22,663 

Greeks 11,505 

Dutch 7,412 

North Americans . 6,028 



Arrivals in 1913 



Spaniards . . . . 
Italians . . . . 

Syrians 

Russians . . . . 

French 

Germans . . . . 
Austrians . . . . 
Portuguese . . . 

Britons 

Swiss 

Greeks 

Danes 

North Americans 



122,271 

114,252 

19,542 

18,616 

4,696 

4,620 

4,317 

3,619 

2,132 

880 

849 

819 

519 



"Also," the President continued, "urge your people 
to establish steamship lines between New York and 
Buenos Aires for both passengers and freight under the 
American flag. Study these statistics: 



Tonnage of Foreign Vessels (both Steam and Sail) 

Entered at and Cleared from the Argentine 

Ports in 1913, Showing Nationalities 



Tons 

United Kingdom . 18,433,228 

Germany .... 2,840,178 

Italy 1,443,936 

France 1,181,909 



Austria Hungary 
Norway . . . . 
Holland . . . . 

Spain 

Belgium . . . . 
Denmark . . . 
Uruguay . . . . 



565,406 
498,545 
446,205 
429,888 
346,789 
130,337 
127,068 



Tons 

Sweden 113,858 

Chile 107,826 

Greece 73,652 

Brazil 64,743 

Russia 43,560 



United States 
Portugal . . 
Mexico . . . 
Paraguay . . 
Bolivia . . , 



27,190 

3,432 

1,500 

824 

432 



ARGENTINA 257 

Look at the United States, followed only by Portugal, 
Mexico, Paraguay, and Bolivia !"' 

These figures, like the others, show that those who 
have ventured have been the ones to win. The English, 
Germans, and Italians have ventured the most, and 
to-day have the cream of the Argentine business. 
Moreover, we can displace them only by likewise ven- 
turing men, money, and time. Argentina is like every 
other country. Only those who venture really win. 

As I left the private room in which the interview was 
held, I passed out onto a glassed-in veranda, or sun 
parlor, which looked down upon the bay. There, within 
a mile of waterfront, was the largest number of steam- 
ships that I ever saw together. There were flags of 
every nation. Most of these ships were loading with 
grain or frozen beef from the great elevators and stock- 
yards adjoining the waterfront. What an opportunity 
Argentina will have — thought I — when an inter- 
nation and neutral trade flag shall be adopted and the 
seas come under international control! 

From here I passed into the President's reception 
room. Again I stopped to look at the beautiful paint-, 
ings, by old-world masters, which adorned the room. 
Here was art at its best, amid surroundings of luxury 
and beauty, things for which the grain and cattle were 
exchanged. The contrast was so marked that for days 
it remained by me. For in those moments, the sum 
total of Argentina, with its great producing powers and 
its love for spending, had been revealed to me. Yes, the 
Argentines are taking their own advice. They have 
ventured and they have won; not through saving, as 
did our New England ancestors, but rather through 
spending. 



258 THE FUTURE OF SOUTH AMERICA 

Of course, to the average banker and manufacturer 
of the United States, this seems to be the wrong prin- 
ciple upon which to go. " Borrowing and spending" 
does not sound good to a thrifty New England manufac- 
turer. Hence his fear to extend credits; but this fear 
has little real basis in fact. 

If my Argentine experience had been confined to the 
Argentine palace, probably I, also, would be pessimistic 
regarding a nation which borrows so heavily and spends 
so freely. Fortunately, however, my observations 
were not limited to the palace or from its windows. I 
was able to go out on the Argentine prairies and see the 
great fertile plains where Argentina's wealth is pro- 
duced. As I rode through the thousands of acres of 
corn and other grains and as I saw the hundreds of 
thousands of blooded fat cattle ranging over the prai- 
ries, I gradually came to the conclusion that Argentina 
is justified both in her borrowing and in her spending. 
Those who have never seen a single tract of twenty 
thousand acres of alfalfa in one lot cannot realize the 
great producing qualities of the Argentine Republic, 
and yet it has many such tracts of alfalfa and wheat. 

The next step in South American trade is to convince 
North American short-sighted bankers of South Amer- 
ica's great natural wealth. Whether or not this can be 
accomplished soon I do not know; but I do know that 
if our bankers could be taken to Argentina and shown 
its cities, the wheat fields, the herds of cattle that I 
have seen there, they would not hesitate one moment 
in establishing throughout South America a great Bank 
of North America. 

In referring to the other countries of Latin America, 
I suggest that certain things are needed, such as immi- 



ARGENTINA 259 

gration, irrigation, capital, and the like, and that much 
cannot be expected from these countries until such 
things are secured. It is, however, entirely different 
with Argentina. Although Argentina needs more immi- 
gration and capital, yet it is fast obtaining them. More- 
over, Argentina has a large birth rate and, being a 
greater exporter, is rapidly accumulating capital. In 
other words, Argentina's future is assured. It is a 
country much like our own, and its future will be as 
great and prosperous. Argentina is in a class by itself 
among Latin- American countries. It is not a coming 
country; it is already here ! 



CHAPTER XV 

Pakaguay 

Paraguay is one of the two interior countries of 
South America, and lies almost in the center of the con- 
tinent. It is midway between the two great oceans 
east and west, and its northern boundary is equally 
distant from the northern and southern extremities of 
the continent. Without effective means of transporta- 
tion and inhabited in the main by Indians or people of 
Indian descent, the country in the past has had little 
to offer in the way of trade or investment. But to- 
day, with the completion of railroads, it begins to offer 
a chance for all interested in the development of a rich 
territory where land is cheap and fertile, the possibili- 
ties extensive, and the present inhabitants incapable 
of great things. The area of Paraguay is about one 
hundred and twenty-two thousand square miles, or the 
same size as Indiana, Illinois, and half of Missouri com- 
bined, and the population is perhaps eight hundred 
thousand. This population has been increased greatly 
of late by immigration, for the country now offers op- 
portunities for making a good living in agriculture. 
The greater part of Paraguay is a subtropical plain, and 
grows the products of both the temperate and tropical 
zones. The great stretches of prairie or llanos offer 
good opportunities for cattle raising, while the forests 
on the slopes of the mountains and along the banks of 




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PARAGUAY 261 

the numerous rivers furnish woods of great variety and 
value, besides many medicinal plants. 

Like most of the countries of South America, the 
history of Paraguay stretches back to the early six- 
teenth century. It was discovered by Sebastian Cabot, 
who in the years 1526 and 1527 sailed up the Parana 
and Paraguay rivers. He was followed by Spanish 
explorers who founded Asuncion, the capital of the 
republic, in 1536. The Spanish governed the country 
until 1811, when independence was declared, and since 
then Paraguay has been, in theory at least, a republic. 

The great rivers flow along the borders of the country 
and serve as its highways. The great Parana River is 
more than two thousand miles long, and can be navi- 
gated by large vessels as far as the boundary of Para- 
guay, and by small boats for six hundred miles farther. 
The Paraguay River flows through the center of the 
country, and large steamers can sail up as far as 
Asuncion, about six hundred and fifty miles from 
Buenos Aires. 

Asuncion is a prosperous city, and has about one 
eighth of the population of the country. It is, of 
course, the trade center of the country, and is quite a 
modern place. There is an electric light and street car 
system, and many of the buildings are attractive. It 
has some manufactures such as tanning and cigar mak- 
ing, and the lace industry is also important. 

The resources of the country are largely agricultural. 
Indigo and sugar-cane are easily cultivated, and the 
forests contain many different varieties of cabinet and 
dye woods, resins, and balsams. A native fiber plant 
known as mapajo, used in the manufacture of a coarse 
textile for garments, is extensively raised. Tobacco is 



262 THE FUTURE OF SOUTH AMERICA 

a leading crop, and all this goes to Buenos Aires. The 
native cotton is very valuable, and this industry offers 
great possibilities. 

One of the most lucrative industries in Paraguay is 
the manufacture of oil of petitgrain, extracted from 
the leaves of the native orange tree. The product is 
used as a basis for perfumes and flavoring extracts, 
and it is said that it takes three hundred and fifty 
pounds of orange leaves to yield one pound of 
essence. 

The principal crop of the country is the mate tea 
which grows everywhere, and the exports of which are 
immense. The plant is called yerba mate. Although 
Paraguay is its home, it also grows largely in southern 
Brazil. It is usually found in the forests, and is al- 
ways considered by lumbermen as a most valuable 
by-product. 

Those who drink this beverage say that it has all the 
stimulating and nourishing qualities of the tea we use, 
but none of its injurious effects. It has much in com- 
mon with other tea and with coffee, as it contains both 
tannin and caffein. Of tannin, there is less in mate 
than in other teas and in coffee; of caffein, there is 
less than in tea, but about the same amount as in cof- 
fee. It is claimed, therefore, that the caffein gives to 
Paraguay tea its sustaining quality, while the small 
amount present accounts for its decided virtues. It 
does not irritate but soothes the nervous system, and 
this is the reason for its past and present use among all 
classes of people. 

The name mate really refers to the cup from which 
the natives drink rather than to the herb itself. This 
cup is a dried gourd, hollowed out, with an aperture 



PARAGUAY 263 

where the stem used to be, into which the crushed 
leaves are placed before boiling water is poured on them. 
From this cup the decoction is then sucked through a 
tube called a bombilla (little pump). Formerly this 
was made of a reed, and is sometimes now so found; 
but usually it is fashioned from metal, with a perforated, 
spoon-shaped expansion at the lower end. 

The tea may be drunk either cold or hot, at meals or 
between meals. It is reported that a company has been 
formed abroad to extend the use of mate. Return- 
ing settlers and soldiers from South America insist 
on importing it for their own use, as they become very 
fond of it. 

The plant itself is the South American holly, and 
outside of Paraguay is found also in the four Brazilian 
states of Parana, Santa Catherina, Rio Grande do Sul, 
and Matto Grosso; also in the northeastern region of 
Argentina. It is a bushy evergreen shrub, somewhat 
resembling an orange tree. It has bright green leaves, 
small yellow flowers, and tiny, purplish-black berries. 
There are different kinds, the best having a very small 
leaf of a dark-green shade. The seeds become so hard 
and dry, a few days after picking, that they can be 
cut only with a very sharp utensil. Harvesting the 
leaves is conducted now in the same way that it was 
centuries ago. This method is described by an author- 
ity as follows: 

"The branches are collected and piled up in the form 
of a haystack. Then the torrefaction, as the smoking 
process is called, begins, and lasts for about three 
days. The natives are very skillful in deciding just 
when the leaves have reached the proper degree of 
dryness for use. Usually about twenty-four hours is 



264 THE FUTURE OF SOUTH AMERICA 

the right time for exposing them to heat, sometimes 
more, but never less." 

The Indians originally did nothing but gather the 
leaves from the native trees in the forest; but the 
Jesuits cultivated mate from the seed, and there has 
since been a steady growth in this cultivation. As 
South America supplies the world, and as the beverage 
is becoming increasingly popular, more and more cul- 
tivation will probably be necessary to meet the demand. 
It has been estimated that the number of drinkers of 
Paraguay tea is about ten million persons in South 
America, and it is stated that the supply frequently 
falls short of the demand. The yearly consumption 
per capita of this drink is given as follows: Chile, 112J^ 
pounds; Bolivia, 4J/2 pounds; Argentina, 20 pounds; 
Uruguay, 22 pounds; and Paraguay, 34 pounds. Even 
in the Brazilian State of Parana, very near the coffee- 
growing center of the world, the annual consumption 
per capita is forty-four pounds. This shows the influ- 
ence the habit has on the European immigrant, for 
Parana has a relatively large proportion of Germans 
and Poles among its colonists. 

Throughout Brazil and Argentina, the average retail 
price of the tea which we drink is about $1.20 a pound; 
while mate sells for less than twenty cents a pound. 
In large quantities, I could purchase it for ten cents a 
pound, so that it surely could be sold in the United 
States at from twenty to twenty-five cents a pound. 
For making one cup of drink, more mate is needed than 
regular China tea. China tea yields up its strength 
more quickly when dropped into boiling water than 
does mate. China tea-leaves, however, are of little use 
for the second cup; while the same mate-leaves are 



PARAGUAY 265 

good for a second, third, or fifth cup. Thus in making 
one cup of tea, our regular China tea is more conven- 
ient and perhaps as cheap; but in serving an entire 
family, mate could be used to great advantage. Some 
day it will surely be introduced extensively throughout 
the United States, and some persons will make a large 
amount of money in the process. 

The United States has had little trade relation with 
Paraguay. We have taken some of their exports, such 
as hides and tannins, but we have sent them little in 
return. Our exports to that country are only about 
six per cent, of their total imports. As Paraguay will 
eventually be on the transcontinental railway, this 
state of affairs should be changed easily. Immigration 
will rapidly increase the demand for supplies of all 
kinds, and should make the country a good market. 
Paraguay also offers opportunities for settlers, and the 
delightful climate will aid in securing them. So far the 
trade has been principally in the hands of the Germans, 
French, and Spanish; but altogether it amounts to 
little. Experts on South America tell me that Paraguay 
is the least developed of any of the countries. While 
its future may be bright, yet this future is a long way 
distant. 

The immediate future of Paraguay depends upon 
when and how its lumber is to be cut and marketed. 
Wonderful timber lands along the rivers can be pur- 
chased to-day at six dollars per acre, while timber is 
selling at high prices in Buenos Aires. The real future 
of Paraguay awaits immigrants who are willing to farm. 
Splendid land can be purchased at from twenty cents 
per acre up, according to the distance from the rivers. 

There are also great water powers in the country. 



266 THE FUTURE OF SOUTH AMERICA 

Coal is scarce in Argentina and central South America, 
and these water powers must ultimately be depended 
upon for manufacture. At the moment, Paraguay only 
needs more railway service to begin a period of develop- 
ment. 



CHAPTER XVI 
Uruguay 

Leaving Buenos Aires at night, one reaches Monte- 
video the next morning, after a ride of one hundred and 
twenty-five miles. There are two lines of very attrac- 
tive steamers, and the fare is reasonable. Montevideo is 
almost due east from Buenos Aires, and is situated 
on a small peninsula, so that in the business parts of 
the city, the streets begin and end at the water. Many 
wonder, when studying Uruguay, why this great body 
of water, one hundred and eighty miles wide and so evi- 
dently an arm of the sea, should not be called the Gulf 
of La Plata. The exact point at which the river enters 
the Atlantic cannot be told, but for all practical pur- 
poses, it is safe to say that the east side of Montevideo 
faces the Atlantic Ocean, while the south is washed by 
the waters of the river. The ancient fortress, El Cerro, 
appears as the guardian of the entrance, on the moun- 
tain from which the city takes its name. The lighthouse 
at the top of this hill, with its revolving light, is visible 
for twenty-five miles. After the absolute flatness of 
Buenos Aires, this elevation is a great relief, though it 
be not more than four hundred and fifty feet. The 
cathedral towers are also conspicuous, rising to a height 
of over one hundred feet above the city. 

Of the city itself, an enthusiastic traveler has said: 
"Oh, altogether different is this from anything in our 



268 THE FUTURE OF SOUTH AMERICA 

New World; this happy, drowsy capital of Uruguay, 
with its little, winding streets showing water at the 
ends, and no great obtruding docks, with its three 
hundred thousand inhabitants, the most contented of 
any South American city, more native-born, fewer 
poor, the healthiest city of the East Coast, clean to per- 
fection, with compulsory education for all, and for all 
peace and good government." 

"This capital of Uruguay is divided into three sec- 
tions: Antigua, or old town; Nueva, or new town; and 
Novisima, or newest town. Naturally, the old town is 
the commercial section on the end of the peninsula, 
having an adequate and up-to-date system of docks, 
representing an investment of ten million dollars or 
more, along the bay inclosed by the peninsula. This 
bay is two miles wide, and therefore capacious enough 
to accommodate a large number of ocean steamers at 
one time. Almost all the great passenger steamers of 
the European lines make Montevideo direct. 

"The new part contains the principal public build- 
ings, while the newest portion stretches back among the 
hills. Streets in the newer sections are wider than in 
the old, and there are sixteen plazas in the city, of 
which Prado Park is the finest. This is one of the fairest 
gardens imaginable, with its lakes, lawns, and a great 
variety of trees and shrubs. It has a restaurant and 
other buildings; also sections fitted up for all sorts of 
outdoor games." 

About one sixth of the buildings in the city are three 
or four stories in height, most of the dwellings being of 
only one story, constructed of native stone. Many of 
these have fronts of bright-colored stucco. In some 
parts of the city Portuguese tiles are used in the archi- 




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URUGUAY 269 

tecture, and there are buildings with handsome fronts 
of granite or Italian marble. Most of the streets are 
lighted by electricity. Water is obtained from the 
Santa Lucia River, thirty-seven miles distant, the large 
reservoir being one hundred feet higher than the cen- 
tral square of the city. There is a good sewage system, 
aided by the natural situation of the city, the land slop- 
ing from the central ridge of the peninsula to the water- 
side. 

Montevideo seems to be advanced in her care of the 
poor and diseased, as is shown by the commodious 
building in the midst of a beautiful park, provided as 
an almshouse for the city's poor, and by the various 
hospitals. A handsome building is the home of the 
league organized to fight the ravages of tuberculosis. 

The Solis Theater covers almost two acres, and will 
seat two thousand people. The various buildings of the 
University compare favorably with those of any city. 
The Villa Dolorosa is said to be the most unique place 
in the world, for showing an abounding and indiscrimi- 
nating love for animals. To quote again: 

"Here was a pagoda surrounded by tropical plants, 
most beautifully tended, all for the benefit of one happy 
anteater, daily kept supplied at vast expense with his 
choice fare. Birds of amazing color and size sang in a 
great thicket of trees. The wires that kept them cap- 
tive were so concealed that neither they nor we could 
see them. Snakes and huge serpents crawled blissfully 
among ferns and palms, the guarding glass roofs and 
sides clear to transparency. Small four-months-old 
lion cubs, with wide leather collars, frolicked unre- 
strained among the keepers, for all the world like pet 
puppies, and we actually patted them; no one could 



270 THE FUTURE OF SOUTH AMERICA 

help it. There was a llama living on a manufactured 
Andean peak, and a chimpanzee which had a keeper all 
to himself and his own gymnasium for play and exercise. 
A cemetery is one of the features. Here each of the 
animals which had died had his own grave and tomb- 
stone, with appropriate carvings and epitaphs." The 
Montevideans are proud of this patron of animals, and 
like to have visitors spend an afternoon at the Villa 
Dolorosa — as well as to visit the Solis Theater or 
the University. 

Of course, the Argentines — and most travelers, 
for that matter — look upon Montevideo as a suburb 
of Buenos Aires; but let me tell you that manufac- 
turers of the United States who work on this basis 
make a great mistake. In no country have I found a 
more sensitive and loyal people than in Uruguay. 
Every merchant there with whom I talked said, in effect: 
"Tell your friends in the United States to do business 
with us direct. Don't make us do it through Buenos 
Aires. We have a fine city here of nearly half a million 
people. It is growing every day, and we want to deal 
directly with you. We have a little country; but our 
people are justly proud." 

Whoever wishes something to distinguish Uruguay 
from its sister republics may remember that it is the 
smallest of the South American States, and that it has 
neither mountains, nor deserts, nor antiquities, nor 
aboriginal Indians. Some one calls Uruguay a buffer 
between the larger States of Argentina and Brazil, and 
certainly there has been plenty of fighting in her terri- 
tory. Another historian calls it the "cockpit of the 
southern half of the continent." From the time when 
it was discovered, in 1515, down to the period when the 



URUGUAY 271 

power of Spain was permanently established on the 
Plata, both Spanish and Portuguese settlers had to 
contend with the constant hostilities of the Indians. 
Later it was the storm center of the Spanish and Portu- 
guese strife for territorial control. Then came the in- 
vasion of the English, and a few years later the wars for 
independence. 

Finally, on May 1, 1829, Uruguay achieved her inde- 
pendence, and set up a government of her own, as the 
Oriental Republic of Uruguay. Ever since the people 
of Uruguay became independent of Spain, fighting has 
been in order. 

The peculiar thing about it is that with all this fight- 
ing, Uruguay has constantly prospered, and has con- 
tinued to grow in wealth and population. Capital has 
come in freely to build railroads, and the Uruguayan 
five per cent, bonds average a price in the London stock 
market which would seem to indicate the good opinion 
held by European investors. Foreign trade has in- 
creased many fold since 1862. In spite of their love for 
fighting, the people have turned to \^rk, and the land 
or cattle owner has to depend less on foreign labor than 
in Argentina. The population to the square mile is 
greater than that of any other country of South Amer- 
ica, which, however, is not giving it a very large density 
figure (13.1). 

Although small by the side of its neighbors, Brazil 
and Argentina, and the smallest of the South American 
republics, yet Uruguay is twice the size of Portugal, 
and about the size of New England with Maryland 
added, or, as some one has said, it could wrap in its 
limits North Dakota. It has a wide, almost unbroken 
sweep of parklike plains, with no mountains higher 



272 THE FUTURE OF SOUTH AMERICA 

than two thousand feet. It possesses a network of 
rivers, with seven hundred miles navigable, five hundred 
of which are furnished by the Uruguay and the La 
Plata. 

The climate is mild, bordering on sub-tropical, like 
that of Texas or Georgia. Rainfall is unequally dis- 
tributed as regards locality. There is no marked rainy 
season, but rain falls irregularly throughout the year, 
and further, varies greatly from year to year. Tropical 
vegetation is found in the northern provinces. The 
southern shore of Uruguay is becoming a popular sum- 
mer resort for wealthy Argentines and Brazilians, its 
climate resembling that of the French Riviera, without 
the latter's disadvantages of sudden storms, winter 
frosts, and extreme summer heat. 

Until recently, Uruguay was given over almost en- 
tirely to the raising of cattle and sheep, but now its 
future promises great things in the products of the soil. 
The proportion of exports was: cattle products, forty 
million dollars, agricultural products, two million dol- 
lars; but this is rapidly changing in favor of agricul- 
ture. Statistics show that not an acre of Uruguay's 
seventy-two thousand square miles is unproductive. 
There is no fear of either drought or frost, but so far 
only about three per cent, of the territory is cultivated 
in food stuffs. 

There are millions of cattle, mules, asses, horses, 
sheep, and goats. An animal sanitary police has power 
to treat, quarantine, and destroy diseased animals and 
prepare live stock statistics. Jerked beef (tasajo) pro- 
duction is one of the oldest established industries of 
the country, and this satisfies the taste of workers in 
Brazil, Cuba, and Porto Rico, whither it is exported. 



URUGUAY 273 

For further export, the frozen-beef establishments and 
the beef-extract factories consume much of the cattle 
supply. Another great staple of the live stock industry 
of Uruguay is that of the shearing and exportation of 
wool. 

Millions of acres of seemingly virgin country are 
given over solely to sheep raising in Uruguay, so it can 
be said to be an important factor in the world's wool 
production. Local conditions and climate, together 
with intelligent methods of propagation, have brought 
about a consistent increase of the flocks of sheep, that 
has made the wool clip of Uruguay one of the greatest 
sources of wealth to the republic. To-day sheep may 
be broadly divided into two classes — the Spanish and 
the British, omitting the Asiatic breeds. The finest 
sheep in the world came originally from Spain, so it was 
most natural that the ships of the first colonists sailing 
from that country for America should carry numbers of 
these animals. That was the beginning of the wool 
industry of South America. While all the countries 
produce wool from domestic sheep, Uruguay, Argentina, 
and Chile lead in the matter of exports. In these three 
countries, the greatest care has been given to the selec- 
tion and development of types that thrive best under 
local conditions, and no expense has been spared in 
searching Europe for the finest varieties. 

It is interesting to note that as early as 1793, the 
hacendados (ranch owners) of Uruguay reported that 
there were upwards of four hundred and fifty thousand 
head of cattle killed annually for their hides, and that 
efforts should be made therefore to utilize the meat 
from these cattle to put cattle raising on a sounder 
economic basis. Artigas, the national hero of Uruguay, 



274 THE FUTURE OF SOUTH AMERICA 

was one of the first to recognize the value of such a sug- 
gestion, and in 1813 he was instrumental in forming the 
Junta de Agricultura (Agricultural Council) which had 
power to encourage agricultural development and to 
pass regulations for the subdivision of the land. A be- 
ginning was made even then of experimental farming, 
which later has been so wisely increased. Gradually, 
favorable rural legislation was passed. The Rural As- 
sociation of Uruguay was organized some years ago, 
and out of this movement have grown experimental 
stations, a policy of animal sanitation, a diffusion of 
agricultural education, and a lasting support on the part 
of the government to the extension of farm life. 

One good feature of the use of the land in Uruguay 
is the fact that the rural holdings of the country are 
divided among a large number of small properties. 
Fully three quarters of these are less than twelve hun- 
dred acres each, an extent which is looked upon as a 
minimum area for cattle raising. The predominance of 
stock raising, however, is gradually giving way to an 
increase of agriculture, and immigration plays its part 
in this development. Later arrivals into the country 
give more attention to small farming, so that as the 
cattle industry increases, the supply of grains and fodder 
crops will be more likely to keep up with it. There is 
plenty of room for both industries for some time to 
come. 

For a long time the production of jerked beef was 
the leading industry, the greater portion of it being 
exported to Brazil, Cuba, and Porto Rico, as has been 
said, where it is even preferred to fresh meat because 
ice is not necessary to preserve it. It is quite probable, 
however, that as the number of cattle killed for refrig- 



URUGUAY 275 

erator meat increases, this latter industry will lead, 
as the market for its product is almost unlimited. Uru- 
guay cannot yet compare with Argentina in its output of 
refrigerator meat, but the process is fast being recog- 
nized as more profitable. At least one saladero, or 
salt-meat packing house, has been changed into a 
chilling establishment, and there are many such new 
establishments. Mutton, it seems, may be frozen, but 
beef is best when chilled down just to a preserving 
point, but not frozen hard. 

Few people are aware that much of the beef extract 
on the market comes from the special establishments in 
Uruguay. The high grade of the available cattle makes 
it possible for the finest article in this line to be pro- 
duced there. The factory in Fray Bentos has been 
called the " greatest kitchen in the world." The best 
of the meat is here subjected to scientific preparation, 
with the greatest possible care and attention to detail. 
There are chemists, laboratories, engineers, and authori- 
ties on technical matters, all engaged in cooking the 
beef so as to turn it out in the best and most accept- 
able form as beef extract. For their employees, the 
company maintains "almost a model city, providing 
pleasant homes, medical attendance, schools, recrea- 
tion grounds, and everything for improving their physi- 
cal and moral welfare. This plant, and another on the 
Argentine side of the Uruguay River, ten miles farther 
up, have their own wharves, as ships of twenty feet 
draught come up this far, and the products can be sent 
direct to all parts of the world." 

As I have suggested, agriculture is on the increase in 
Uruguay. There is yet much land undeveloped, and 
as there is no fear of drouth or frost, and the land is 



276 THE FUTURE OF SOUTH AMERICA 

easily tilled, great crops are raised where the settlers 
have devoted themselves to this industry. The prin- 
cipal crop is wheat, with corn a close second. Potatoes 
and other vegetables are also raised, and lately the cul- 
tivation of the grape has received a considerable im- 
petus. The raising of tobacco has also lately been 
undertaken in a scientific way. Good Uruguay land 
sells for from ten to thirty dollars an acre. 

Though making no claims to being a rich mineral 
country, Uruguay probably has some deposits of gold, 
silver, lead, copper, manganese, tin, and graphite. 
Petroleum has also been found. Gold is the only min- 
eral worked, and that only to a limited extent. In the 
southern part of the country, there are large deposits 
of a granitic rock useful for paving purposes, while 
sandstone for building purposes is obtained from a dis- 
trict north of the Rio Negro. Some parts of the coun- 
try contain limestone. Agates and carnelians are found, 
as well as opals and amethysts. The agates are ex- 
ported in large quantities to Germany, where they are 
used in the manufacture of various fancy articles. 
Other semi-precious stones are found in great quanti- 
ties, including topazes, garnets, moonstones, cat's- 
eyes, and others, very fascinating to see in huge heaps 
in jewelers' windows. However, compared with Brazil, 
Peru, and Chile, the mineral deposits of Uruguay are 
almost nothing. 

The forests, such as they are, are rich in timber use- 
ful for building and cabinet making, much of the wood 
being noted for beauty and durability. A number of 
the trees have queer names which would mean nothing 
to the average reader, and there are also plenty of laurel, 
willow, acacia, palm, poplar, cypress, and other fa- 



URUGUAY 277 

miliar trees. A forestry survey is being carried on by 
the Government Division of Agriculture, and plans are 
under way to increase the area of wooded land. Mil- 
lions of trees from all parts of the world have been 
planted on land otherwise of little value, and now they 
are sources of timber supply. The conservation of 
forests has also received attention, as the reckless 
methods of lumbering were denuding the land as in 
other places not so far from home. 

Manufacturing enterprises are growing. In Monte- 
video are several flour mills and boot and shoe facto- 
ries. Furniture is made in considerable quantities. 
Brick and tile, cement, and coke works are established, 
and large glass and bottle factories. Several woolen 
mills are in successful operation, and some cotton and 
linen cloths are woven. The manufacturing interests 
are chiefly, however, for local demand, and cannot 
begin to meet the market, which must depend almost 
altogether upon the importation of foreign goods. In 
regard to the cement, it is interesting to note that a 
local merchant just before my visit reckoned carefully 
the comparative cost to the consumer of the foreign and 
the local product. After itemizing the ocean freight, 
insurance, customs, handling expenses, etc., he stated 
that the total cost of a barrel of foreign cement in 
Montevideo was $3.47, and triumphantly announced 
that the local factory could put the same quality on 
the market for $3.46! This very well illustrates the 
close figuring and loyalty of Uruguayan people. 

Railways and interior waterways furnish means of 
transportation, and the railways are constantly being 
extended. Uruguay takes second rank among the 
Latin-American republics in its proportion of railway 



278 THE FUTURE OF SOUTH AMERICA 

mileage to square miles of territory. About half the 
length of railway is under State guarantee. The short, 
branch-uniting Rivera station with the frontier, thus 
establishing international traffic with Brazil, has been 
finished. 

The extensive river system of Uruguay provides the 
country with over seven hundred miles of waterways, 
the most important being the Plata and Uruguay riv- 
ers. On the Uruguay there are ten ports open to inter- 
oceanic trade — Carmelo, Nueva Palmira, Soriano, 
Fray Bentos, Nuevo Berlin, Casa Blanca, Paysandu, 
Nueva Paysandu, Salto, and Santa Rosa. On the Rio 
Negro is the interior port of Mercedes, and on the San 
Salvador River a port of the same name. Vessels of 
fourteen feet draft can ascend the Uruguay as far as the 
city of Paysandu, and vessels of nine feet draft can go 
farther. Fifteen other rivers are all navigable for short 
distances for ocean-going steamers, and for small craft 
into the interior of the country. 

The only lake of any importance is Lake Merim, sit- 
uated on the border of Brazil, and this has a regular 
line of steamers communicating with the different 
towns along its shores. Uruguay's steamship com- 
munication with other parts of the world occurs with 
frequency and regularity. From Montevideo, the chief 
port of the republic, there are, as has been said, daily 
steamers across the Plata to Buenos Aires, with all 
modern comforts, conveniences, and improvements. 
Up the Plata to ports in Paraguay and Brazil are avail- 
able many steamers or steamer connections. Several 
local transportation lines along the Atlantic coast to 
Brazilian ports make frequent departures and arrivals, 
and all the transatlantic steamship lines, after leav- 



URUGUAY 279 

ing Montevideo, touch at Santos, Rio de Janeiro, and 
Bahia before proceeding to Europe. There are now 
more than twenty-four of these lines, representing 
practically all nations of Europe having a foreign com- 
merce. It is interesting to see, in the harbor of Monte- 
video, British, French, Spanish, German, Austrian, 
Dutch, Belgian, and other flags, but one misses the 
Stars and Stripes. The steamers of the companies 
registered under these flags are modern, luxurious, and 
convenient. On the average a first-class steamer leaves 
Montevideo for Europe every two or three days. For 
New York there is only a weekly service, but once a 
fortnight a through steamer is scheduled between these 
ports without change. 

Education, as in all these South American countries, 
is inadequate, but facilities are constantly increasing. 
Primary education is obligatory in Uruguay. In 1912, 
with an estimated population of one million one hun- 
dred thousand, there were in the republic about nine 
hundred and fifty public schools with an attendance of 
nearly three hundred thousand pupils. There are gov-, 
ernment normal schools for males and females, schools 
of arts and crafts, and a military college. The capital 
city has a fine university, with departments of law, the 
sciences, medicine, mathematics, agriculture, and 
commerce. 

The country became a republic in 1830, and the con- 
stitution promulgated in July of that year is in force. 
The Senate and House of Representatives compose the 
General Assembly, in which all legislative power is 
vested, and meet annually from February 15 to June 15. 
Representatives, the number of whom varies with the 
population, are elected directly by popular vote in 



280 THE FUTURE OF SOUTH AMERICA 

the proportion of one for every three thousand inhabit- 
ants or fraction exceeding two thousand, and for a 
term of three years. The Senate consists of nineteen 
members, one for each department, who are elected in- 
directly for a term of six years. This body is renewed 
by thirds every two years. Every citizen over twenty 
years of age, who is physically and mentally able to do 
so, and is registered, is entitled to vote. During recess, 
a permanent committee, composed of two senators and 
five representatives, takes the place of Congress, their 
duty being to assist and advise the President on all 
matters legislative, and to act for the General Assembly. 

The President is chosen by the General Assembly for 
a term of four years, and may not be reelected for the 
term immediately following his own. There is no Vice- 
president, so that the presiding officer of the Senate 
takes the place of the President, in case of his death or 
disability. There are now seven Cabinet departments, 
with an officer at the head of each. These ministers 
are appointed by the President, but are responsible 
both to the President and to the Congress, or General 
Assembly. 

To sum up, Uruguay has all the material conditions 
for prosperity and happiness, an abundance of good 
land, a temperate and genial climate, waterways for 
traffic provided in her rivers, and artificial iron high- 
ways on land, supplied by enterprising British capital- 
ists. What is to be said of her inhabitants? Until 
recent years they were almost entirely of Spanish stock. 
The warlike Indians have been killed off. Although a 
few negroes are to be found along the Brazilian frontier, 
yet the great majority of the people are of European 
stock. Of late years a steady stream of immigrants has 



URUGUAY 281 

come from Italy, though not in such numbers as to 
Argentina. A smaller number comes from Spain, in- 
cluding, fortunately, many industrious Basques. Many 
English and Germans are in business in the cities. 

Probably a fifth of the population are of foreign 
birth, which is not a large proportion when compared 
with the foreign-born population of either Massachu- 
setts or Rhode Island. The Uruguayan of the present 
day is, then, a colonial Spaniard, modified by the con- 
ditions of his life during the past ninety years. He 
likes the country, and is strong, active, and lawless, 
like the Guacho of Argentina. Having settled down 
now to a more quiet way of living, he still retains some- 
thing of these breezy, audacious, yet frank and generous 
qualities. He is intensely proud of his country, and 
Englishmen and Germans settled in Montevideo say 
he is a good fellow. 

There is less wealth and ostentation in Montevideo 
than in Buenos Aires, and the residents of the latter 
city like to come over to this Uruguayan capital for 
"rest and soul expansion among the leisurely and dig- 
nified Montevideans." The Monte videans do not resent 
this suggestion, because, though the city seems rest- 
ful, it does not seem dead. Some of the homes, es- 
pecially on the outskirts of the cities, are gems of old 
Spanish architecture. 

The commercial traveler, or the student of this region 
of La Plata, must realize that a great immigration 
movement is under way, and that this movement will 
increase until all these empty spaces are filled as our 
own northwest has been filled with settlers and home- 
makers. He must also recognize the fact that with 
better governments and with statesmen increasingly 



282 THE FUTURE OF SOUTH AMERICA 

interested in material and industrial conditions, these 
countries are growing, just as our own country grew. 
This fact should be driven home to every manufacturer 
or commercial association looking eagerly toward the 
South American markets. These countries call for 
just those supplies which our own country needed for 
success in conquering the wilderness. We already 
know, or ought to know, what the people under such 
conditions want. We ought to be the first to satisfy 
their wants. 

But we must not be in a hurry. The man who looks 
at South America with an eye for immediate profit 
and no more, might better stay at home. He must be 
willing to work for the establishment of a reputation 
for his goods and be determined to stick for at least 
five years. The lack of direct trade facilities with the 
United States will continue to be a great drawback to 
selling goods in any South American country. The 
customer may say to you: "We would like to trade 
with you, for we like Yankee-made goods, but how can 
trade be kept up when there is not better regular 
steamer service between the United States and our 
shores? We have good and cheap transportation facili- 
ties to Europe. When we buy there, we know that our 
purchases will arrive within a reasonable time after the 
order is given; but when we buy from the United States, 
we cannot tell within six months when our goods may 
arrive." North Americans also have much to learn in 
the line of careful packing of goods which may have 
to be discharged from lighters, and perhaps continue 
their journey on mule back. 

Some one has well asked: 

"How many of us, who have taken great pride in 



URUGUAY 283 

that vastly esteemed policy of ours known as the Mon- 
roe Doctrine, have stopped to speculate as to how the 
other parties concerned may feel? How many of us 
have studied as to the feeling toward us existing in the 
minds of the South Americans? Just how do we stand 
with the trade of South America?" 

Perhaps here, in a discussion of Uruguay, as well as at 
any other time, it is appropriate to give the answer. 
We have had a share in the South American trade, but 
this is not owing to our brilliancy. Europe captured 
the cream, for, although no less arrogant in their pride 
than are we, the English and Germans are less stub- 
born. They are more willing to set aside personal feel- 
ing, and concede something to the personality of their 
prospective customers. It is undoubtedly true that 
the American exporter is merely tolerated in South 
America, that he enjoys no favor through a feeling of 
kinship, nor indeed through anything that he has done 
for South America. He must, therefore, make great 
efforts to ingratiate himself with his customers and to 
overcome this long-standing prejudice on their part. 

Then again, in calling ourselves Americans, we offend 
the delicate sensibilities of the South Americans, be- 
cause they argue, and rightly, that that name is no 
more peculiar to us than to them, or indeed, to the 
people of Canada or Mexico, who, by the way, have 
the same feeling about it. The business man seeking 
trade in these southern republics should therefore avoid 
using this name for himself, as it certainly raises 
against him at once a strong prejudice. If he fails to 
observe this very essential point, he places himself on a 
par with that manufacturer and exporter of gas engines 
who was eager to get his goods into the markets of the 



284 THE FUTURE OF SOUTH AMERICA 

United States of Brazil. It is an old story, but will bear 
repetition. Not knowing, or at least not heeding, the 
fact that foreign exporters sent business diplomats, not 
ordinary drummers, to South America, he thought to 
accomplish his purpose through the mail. He there- 
fore prepared a very elaborate and profusely illustrated 
catalogue, which, thinking to pay his prospective cus- 
tomers a delicate compliment, he had printed in Span- 
ish. As the native tongue of the Brazilians is Portu- 
guese and an acute jealousy exists toward anything 
Castilian, this was hardly a tactful move. If you can- 
not speak Portuguese when in Brazil, better speak 
English or French, as they seem to resent Spanish. 

In spite of the fact that Spanish is no more a strange 
tongue to us than it is to the British and Germans who 
have so far distanced us in the race for South American 
trade, the Europeans have gained their advantage by 
their adaptability in dealing with those of another 
tongue. They have been willing to study Spanish and 
Portuguese, while we have insisted that our South 
American neighbors should communicate with us in 
our own language. Our reward is this. When South 
America wants money it does not turn to its would-be 
Big Brother, but to its French, English, or German 
friend, who very willingly and promptly mortgages all 
Little Brother's resources. These European friends 
also exact a good tribute from Big Brother, when he 
tries to do a little trading, because they are in control 
of the mediums of exchange. 

Europe is nearer to South America than is the 
United States, and this tends to cause the Argentines, 
Brazilians, and Uruguayans to look upon us as stran- 
gers rather than the Europeans. In sailing from New 



URUGUAY 285 

York to any South American port, it is necessary, in 
order to take advantage of the trade winds, almost to 
come in sight of the Canary Islands, and even in steam- 
ing down, Cape St. Roque, much farther east than New 
York, must be rounded. Few people realize that New 
York is straight north of the western coast of South 
America, and that the latter is really southeast, rather 
than south, of North America. Therefore a steamer 
voyage from Montevideo to most European ports is no 
longer than to New York, and to Lisbon is much 
shorter. 

Naturally, then, the luxury-loving descendants of 
the Spanish greatly prefer to go to London, Paris, or 
Lisbon, and hence know the people of these European 
cities better than they know the people of New York. 
Once there, the shopkeepers of these places make it 
their business to see that these customers have no loose 
change to spend, if they should later come across to 
New York. Some one has well expressed it thus: 
" Europe occupies a corner site at the intersection of 
busy streets in the market place of the world, and its 
barkers are always in good voice; while Uncle Sam's 
little shop is up a side alley, and he pipes his wares in a 
feeble treble." 

There is yet another important fact which deter- 
mines the attitude of the South Americans toward us. 
Europe has never, to put it mildly, tried to have us 
stand well in the estimation of South America. Rarely 
will you see in a South American newspaper a news 
report of any great or worthy achievement in the 
United States, whether in the line of history, science, 
philanthropy, or literature. But when it comes to 
anything in the line of scandal, a bank defalcation, a 



286 THE FUTURE OF SOUTH AMERICA 

political disgrace, or something derogatory to the 
government or people of the United States, long dis- 
patches about it will reach the South American press. 

When, therefore, our business man goes scouting for 
South American trade, he must face these conditions, 
and govern himself accordingly. He must realize that 
he will be received as a stranger, not as a friend; that 
he will have to live down preconceived unfavorable 
opinions against him. He must be patient and tactful 
in trying to emphasize, by his manner and treatment 
of the South Americans, the fact that these prejudices 
of theirs are unjust. Moreover, all of us should make 
clear that the Monroe Doctrine is, on our part, not a 
condescension to inferiors, whom we -design to take 
possession of, but only the indication of our sincere 
friendship and confidence toward equals, whom we 
would have as friends and comrades. Such an attitude 
is especially important when dealing with the people 
of a little country like Uruguay. 

Uruguay does not ask for our sympathy. It is al- 
most in Argentina's class — absolutely independent. 
Uruguay has every natural advantage that Argentina 
has, and perhaps a more industrious and frugal people. 
I am fond of the Uruguayans and believe that consider- 
ing the size of their country, their future is very bright. 
They have the Holland of South America. 

I also believe that Uruguay's future is to be prosper- 
ous because her people are progressive and stand for 
equal opportunities for one another. In social move- 
ments and in the separation of church and State, 
Uruguay is the most advanced of all Latin-American 
countries. To my mind this is greatly in its favor. 



CHAPTER XVII 
Brazil 

Argentina is at present the strongest of the Latin- 
American countries, but it is not the largest nor the 
richest in natural resources, for in both these regards 
Brazil leads. When our bankers study the extent, 
fertility, minerals, water powers, and other natural 
assets of South America, they must treat with great 
respect Brazil's plea for more credit. 

In some ways studying South America is like study- 
ing astronomy. Astronomical distances are inconceiv- 
able. South American distances are overwhelming. 
This fact not only applies to the continent as a whole, 
but to the separate countries as well, especially to the 
United States of Brazil, which is of itself integrally 
greater, physically richer, and even more beautiful 
than the United States of America! Think of any 
writer trying to cover the United States of America in 
one article of three thousand words! Yet I have 
known editors to return splendid manuscripts on parts 
of Brazil, " because the country was described in a 
previous number ! " 

Manufacturers must appreciate these facts and not 
permit the same man to cover Brazil who " covers" 
the rest of South America. This great southern con- 
tinent can provide work for four good salesmen, but 
by all means every live house should have three : one 



288 THE FUTURE OF SOUTH AMERICA 

for Argentina, one for the West Coast, and one for 
Brazil. It is also a mistake to give all of Brazil to any 
one agency. Continually keep in mind that Brazil is 
larger than all of our forty-eight States combined, with 
much more varied climates and needs. Besides, most 
of its twenty-one States have little governments of 
their own, with separate ports, tariffs, and other regu- 
lations. But aside from these things, there are the 
vastness, wealth, and beauty of Brazil, which few seem 
to realize. 

The journey from Rio Grande do Sul, the most 
southerly port of Brazil, to Para, the most northerly 
port, takes nearly ten days on an average steamer, 
without making a stop. This means that Para is half- 
way between Brazil's southern port and New York 
City! Even the railroad trip from Montevideo to Rio 
Janeiro, covering the southern portion of Brazil, is over 
a thousand miles long, or nearly the distance from New 
York to Minneapolis, or from Chicago to New Orleans. 
Yet this road covers only the temperate and southern 
portion of Brazil, about which we have been taught 
little or nothing. 

If you look at an outline map of South America 
with the boundaries of only Brazil marked, you will 
notice that this country is like a South America within 
a South America, so nearly does its shape approach that 
of the continent. The coast line is, of course, identical, 
and the western projection and pointed southern part 
are very similar. Brazil occupies one half of the con- 
tinent, its area being equal to that of our forty-eight 
States with four additional New York States added. 
Brazil is nearly one hundred times as large as Portugal, 
its mother country. In round figures, Brazil has a coast 



BRAZIL 289 

line of five thousand miles, and a land frontier of ten 
thousand miles. The coast is equivalent in length to 
that connecting New Orleans and the northern extrem- 
ity of Labrador. Every section of this great land has 
money-making possibilities. 

A comparison of population, however, tells a different 
story. A suggestive contrast is found by placing India, 
which lies on almost the opposite side of the globe, in 
comparison with Brazil, for each is in its way a typical 
representative of Old and New World conditions. 
Were Brazil as densely populated as India, it would 
carry five hundred and sixty-one million people in 
place of the estimated twenty-four million now resi- 
dent. A curious feature of Brazil is that with its im- 
mense area and small population, it is hampered in its 
development by the untamed and almost impenetrable 
luxuriance of vegetation! This vegetation is so rank 
that the small population cannot keep it under con- 
trol, and wide stretches of the country are accessible 
only by the aid of the natural highways of the great 
river systems. In Brazil not one fiftieth of the land 
has been subject to the care or cultivation of man. 
Hence I say its money-making opportunities are un- 
excelled. 

Brazil possesses the most remarkable system of water 
highways in the world, which will some day be valu- 
able for transportation, irrigation, and water power. 
These rivers are almost as important as is the vast ex- 
tent of territory possessed by the republic. Try to 
imagine a river more than thirty-four hundred miles 
in length, with its source in the Peruvian Andes, 
sixteen hundred feet above the level of the sea, with 
vast tributaries, themselves from one to two thou- 



290 THE FUTURE OF SOUTH AMERICA 

sand miles long, draining a territory two thirds as 
large as our United States! This region is so rich and 
fertile that the great scientist Von Humboldt said of 
it: "It is here that one day, sooner or later, will con- 
centrate the civilization of the globe." This Amazon 
River is a mile and a half wide at its last Brazilian port 
on the west, broadens until it attains a width of one 
hundred and fifty miles at its northern mouth alone, 
and discharges into the Atlantic a volume of water 
more than four times as great as the outpour of the 
Mississippi. It is navigable, and is now actually being 
navigated by ocean liners for two thousand miles, clear 
across Brazil from the Atlantic Ocean to Iquitos in 
Peru, a Pacific coast country. This river is not attrac- 
tive to me; but it offers great opportunities for money 
making to the man with courage and a sound physique. 

As to the natural divisions and general resources of 
this country, it may be said that the whole southeastern 
part from latitude 5° south to latitude 30° south is 
mountainous or undulating, with here and there wide 
valleys, valuable for cultivation, pasture, or timber, 
and containing mineral wealth. The northwestern 
part and the whole plain of the Amazon are quite flat, 
most of the latter being a forest wilderness. Along the 
north coast there are a few arid districts, but nowhere 
such deserts as cover so large a space in the countries 
of the Andes. The only parts which are as yet even 
comparatively well peopled are the coast strip and its 
fertile valleys, the most southern States, and the State 
of Minas Geraes, a name which signifies "General 
Mines," from its industry. This State offers great 
money-making opportunities in mining. 

As to the people of this great republic, the true 



BRAZIL 291 

Brazilian white nation can hardly be reckoned at more 
than eight million, a very small part of the twenty-four 
million given in the latest reports as the population. 
The rest of the inhabitants are Indians, pure blacks, 
and half-breeds. The early settlers came without 
families and intermarried " freely and frequently" with 
the Indians, and later with the negroes, who began to 
be imported as slaves in 1600. To these mixed races 
may be attributed in part the "full share of armed ris- 
ings and civil wars" which Brazil has to record in her 
history. 

To the southern part in particular many Europeans 
have flocked, as there they can work, thrive, and be 
happy. In southern Brazil are many Germans, while 
the labor on the great coffee estates is almost entirely 
Italian. There are of course many Portuguese, some 
English, and a few North Americans. The afflux of 
Syrians — mostly traveling pedlers or small dealers 
as in our own country — that has come to South 
America and the West Indies during the past few years 
is "a new and curious feature in the currents of ethnic 
movements that mark our time." 

The climate of this great country is of course varied 
according to location. When I went to school, the 
geographies stated that ninety-three per cent, of Brazil 
lies within the tropics, the remaining seven per cent, 
being in the extreme southern part. I was told noth- 
ing about the high table-lands that give to a large part 
of Brazil a temperate climate. Yet Brazil has a great 
plateau area, and the climate of these plateaus is de- 
lightful, the sun's heat being tempered by the elevation. 
In southern Brazil and the middle Amazon valley, 
seasons are fairly well marked, being, of course, the 



292 THE FUTURE OF SOUTH AMERICA 

reverse of those in the United States. In other parts of 
the country, the only recognized seasons are a wet and a 
dry. Owing to the influence of the trade winds, the 
whole of Brazil is subject to heavy rainfall, precipita- 
tion increasing as the interior is approached where the 
moist trade winds strike the plateaus. Nearer the 
equator the division into a wet and dry season is not 
so marked. Para holds the banner for precipitation, 
with one hundred and twenty inches annually in two 
hundred and ninety-one days of rain, three fourths of 
the rainfall being in the months from January to June. 

Yet this very excess of heat and moisture causes such 
a wonderful vegetable growth as is found in scarcely 
any other part of the world, a growth which will some 
day yield great money profits to exploiters. Every 
inch of the ground is covered with some living and grow- 
ing plant. Vines festoon the branches of trees, and 
ferns and mosses cover fallen logs. After a patch of 
woodland has been cut down to the very ground, in 
six years the soil will be so covered with a growth of 
trees and shrubs that the spot can hardly be distin- 
guished from the rest of the forest. This has been the 
case in the giving up of some of the great coffee planta- 
tions. An immense variety of vegetable life is also 
found. Within a radius of a few yards may be seen 
twenty kinds of trees growing side by side. Certainly 
it seems the height of inefficiency for man to waste so 
much time and energy in cultivating the northern 
temperate regions, when such a rich fertile area is lying 
absolutely idle. 

But the effect of the climate on the people is well 
illustrated by the following statement of one of my 
friends in Bahia: 



BRAZIL 293 

"It is all very well to talk about the great oppor- 
tunities of the tropics. Some day they may exist, but 
not to-day. The warm, humid climate of northern 
Brazil takes the ambition out of people. Even when a 
good active Yankee comes down here, he soon becomes 
as lazy as the rest of us. It is a mistake for you North 
Americans to try to do much here — especially those 
of you who are light-complexioned and who do not tan. 

"The difference between the climatic effects of north- 
ern and southern Brazil has been well illustrated to me 
during the past thirty days. I was in Sao Paulo and 
I saw a very little boy come into town on a great horse 
bareback. Just before reaching the city, he dropped 
his whip. As I saw him dismount, I wondered how he 
would ever get back on again. I ordered my chauffeur 
to stop while I watched. The little boy picked up the 
whip and looked about. There was not a stone nor 
a stump anywhere. Only prairies could be seen in every 
direction. Was he stuck? Not much! He simply 
shinned up one of the horse's front legs as one would 
shin a pole, grabbing the horse's mane to help himself 
along. In less than a minute he was on the animal's 
back. 

"Contrasting with this, I employed a big boy in 
northern Brazil who waited for an hour alongside of the 
road for some one to come along to help him on a smaller 
horse. There is certainly something about the climate 
here in the tropics which takes the ginger out of all of 
us. Did you ever hear of a great inventor, artist, writer, 
or any other man of real note who did his work in the 
tropics?" 

The forests produce many valuable trees, such as 
rosewood, satinwood, cedar, and mahogany. A most 



294 THE FUTURE OF SOUTH AMERICA 

useful tree is called the carnahuba. "Its roots are pos- 
sessed of the same medicinal properties as sarsaparilla; 
it yields a large quantity of lumber for building pur- 
poses; from the leaves is obtained a wax from which 
candles are made; and the straw is used in the manu- 
facture of hats, brooms, mats, and thatching. The 
fruit of this tree is food for cattle; the nut is sometimes 
used as a substitute for coffee, and the pith of the stem 
answers the purpose of cork. From various parts of 
the tree are obtained vinegar, wine, salt, an alkali used 
in making soap, flour, a liquid resembling the milk of 
the cocoanut, a starch similar to sago, and a saccharine 
substance; musical instruments and pumps are made 
from the wood of the stem! " If this sounds like a fairy 
story, the reader is referred to the impartial and ultra- 
authentic Foreign Commercial Guide to South America. 

Brazil is the country of tonka beans, arrowroot, 
ginger, black pepper, balsam, tapioca, gum copal, in- 
digo, and Brazil nuts, all growing wild, not to mention 
the greatest product, rubber. The trees producing 
rubber are not usually found in groves, but are scat- 
tered singly in the forest, sometimes not more than 
one hundred or one hundred and fifty trees in a section 
of about one hundred acres, which is as much territory 
as one man can attend to. Through these sections run 
paths called estradas, leading from one tree to another. 
The rubber gatherer sets out in the morning and makes 
several incisions from four to six inches apart around 
each tree. Under these he hangs tins to catch the 
sap. His round of three or four miles may take him 
half a day, and he may begin the gathering after noon. 
He collects the fluid called latex in a pail, obtaining 
eight or ten quarts in all, which will probably produce 



BRAZIL 295 

as many pounds of rubber. This latex must be smoked 
over a wood fire and coagulated on a sort of ladle twirled 
over the smoke. Fresh coats are added as one dries, 
until a lump is formed weighing anywhere from five to 
a hundred pounds. The great lumps, or balls, of rub- 
ber are collected and taken to the nearest river bank, 
where they are carried down to some port for export, 
probably Para. Some trees are cut down and all the 
sap removed, but this waste is now being reduced to 
some extent, by forest conservation. 

The man who does this work probably works for a 
contractor who employs several hundreds, and the 
stories of the atrocities committed by these contractors, 
who have compelled the defenceless Indians to work 
for them without pay and have inflicted all sorts of 
tortures upon them and their families, rival those of 
the worst savages in any country. Though these 
cruelties have been lessened for the time being, con- 
stant vigilance must be exercised to prevent these sup- 
posedly civilized men from allowing their greed and 
inhumanity to control their intercourse with their 
workmen, supposedly uncivilized. 

Rubber was first utilized by the natives of America 
as a waterproof covering for clothing, boats, and for 
a kind of bottle. The earliest word applied to rub- 
ber is caucho, from which comes the corruption caout- 
chouc. When the Brazilian speaks of borracha, he 
refers especially to the product of the hevea, the tree 
giving the finest quality. This is a large tree, growing 
slowly and living long. It is found in the valley of the 
Amazon and the. surrounding States. It sometimes 
reaches twelve feet in circumference, and requires low- 
lying, rich soil, and abundant moisture. It is well 



296 THE FUTURE OF SOUTH AMERICA 

adapted to cultivation, having been planted in the 
East Indian Islands with success. 

Manihot produces the ceara rubber of commerce, 
but it grows in a high, stony, and arid country. This 
is also native to Brazil, but in the region south of the 
Amazon. The best known rubber producer, next to 
hevea, is castilloa, and though found in Peru and else- 
where south of the equator, it is most common in Cen- 
tral America and southern Mexico. Other trees, shrubs, 
and vines yield rubber, one especially being the guayule, 
a shrub from which is obtained a pure product that 
can be used for every purpose. The rubber trees which 
I saw were not over a foot in diameter and very scat- 
tered. In fact, all the forest trees are much smaller 
than I expected. 

Technically it is not correct to call this juice sap, as 
it plays a different part than sap. It is rather the 
cream from the juice, the milk or latex of all these trees. 
It has an exact chemical formula, Ci Hi 6 ; it is a whitish 
solid, opaque, and forms a gelatinous mass with ethers 
and the coal-tar oils. It will also melt and burn. To 
produce the rubber of commerce with which we are 
familiar, it is mixed with sulphur in certain proportions. 
About fifty per cent, of the world's supply of rubber 
now comes from Brazil; but this percentage is con- 
stantly decreasing. 

From my studies in Brazil, it seems to me that the 
days of high rubber prices are permanently over. Not 
only are rubber plantations being set out all over the 
world, but many experiments are being made to obtain 
rubber from a kind of cane or corn stalk which can be 
planted every year. This would be cut by machinery, 
the juice being pressed out as from sugar-cane or corn 



BRAZIL 297 

stalks. In my opinion, the day is coming when these 
experiments will be successful, and rubber should then 
sell for about ten cents a pound. I do not recommend 
raising rubber as a money-making venture. 

With its great extent of territory and wonderfully 
uniform distribution of rainfall, it is no wonder that 
agriculture holds first place in the industries of Brazil, 
though, as I have said, probably not one fiftieth of the 
area has yet come under systematic cultivation. Hav- 
ing one of the greatest tropical areas in the world, an 
extensive sub-tropical plateau section, and fertile tem- 
perate regions in the southern States, Brazil has natu- 
rally depended upon the products of field and forest 
for money making. Even one hundred years ago, the 
sugar of the north and the cattle of the south were 
known abroad, and Brazil has from earliest times been 
self-supporting, as far as the necessities of life are con- 
cerned. At present, coffee and rubber are the great 
export staples of Brazil, while other products entering 
the market are rice, cotton, sugar, tobacco, Paraguay 
tea, mandioca, and cacao. 

A natural coffee plant is a shrub from fourteen to 
eighteen feet high, having no branches on the lower 
part of its long, slender trunk. A great coffee planta- 
tion in full flower is a very beautiful sight. The trees 
cover the hills and plateaus and the perfume is strong 
though delicate. The trees blossom most profusely in 
October, but continue to flower more or less for several 
months. The crop is harvested in May or June, each 
tree yielding four pounds or more of coffee. Coffee- 
picking time occupies every available person on the 
plantation, every other work being dropped until the 
harvest is finished. Brazil produces three fourths of 



298 THE FUTURE OF SOUTH AMERICA 

the world's supply of coffee, and the State of Sao Paulo 
now furnishes one half of Brazil's production. 

The story goes that a Portuguese settler first planted 
a bush in Rio de Janeiro in 1760, and from that have 
come the millions of trees and such a wealth of pro- 
duction that in 1903 the government restricted the 
planting of new trees, because the supply was greater 
than the demand. The coffee crop now averages about 
eighteen million bags of sixty kilos each per year, or 
about two billion five hundred million pounds. Hence 
the price of coffee is now the best barometer of Brazil's 
prosperity. 

Mandioca is another of the great products of Brazil 
which offers opportunities for money making. It is the 
food of the natives, as corn was the food of the North 
American Indians. The early discoverers were told 
that supernatural instruction had been given the 
simple natives in the preparation of this root. In its 
raw state, mandioca is frequently a deadly poison, and 
always an irritant, but when properly prepared, it be- 
comes a highly nourishing food. It is greatly esteemed 
by Brazilians of all classes, and is the staple for bread all 
through the country. The plant is universally grown, 
and the best planting season is from June to September. 
It takes from eight months to two years for the root to 
reach its growth, depending on soil and climate. It 
must be treated with great care in order to change the 
poisonous starchy contents into healthy, edible starch, 
and the natives seem to be very skillful in accom- 
plishing this result. The work must all be done the 
same day, including gathering the tubers, washing and 
grating them, pressing out the water, and roasting 
what is grated, to make the mandioca flour. Some en- 



BRAZIL 299 

terprising " breakfast food" man will some day exploit 
mandioca in our country and make a fortune therefrom. 

The cotton and sugar plantations received a setback 
when slavery was abolished in 1888; but they are now 
prospering again. It is by black labor that these 
products are raised to-day, but such labor is not very 
dependable. The blacks are contented with working 
just enough to provide themselves with the actual neces- 
saries of life. In this industry it is certainly true, as 
is said of South America as a whole, " there is no prob- 
lem of the unemployed." In considering especially the 
world's supply of cotton, and the interest which is now 
being directed by the Brazilian Government to sections 
where cotton is grown on trees, it may be news to some 
readers to know that Brazil has two species of cotton- 
bearing trees that merit attention. The first, known 
as the barragunda, has a barrel-shaped trunk and 
reaches from twenty-five to thirty-five feet in height; 
the second, or imbirussa, which produces a kind of 
brownish cotton, is regarded as a finer grade. Both 
species are indigenous to the country and grow wild. 
I think that cotton growing may present an oppor- 
tunity for making money in Brazil. 

Minas Geraes, the center of the mining industry, and 
larger than the republic of France, is the most densely 
populated of all these Brazilian states. Its capi- 
tal, Bello Horizonte, is unique in that it was built to 
order only a few years ago on a previously unoccupied 
site. Its government buildings alone cost thirty mil- 
lion dollars. Of the State of Minas Geraes, Marie Rob- 
inson Wright (the accomplished traveler and brilliant 
writer who has lately died) said: "Of all the fabulous 
tales related of bonanza places, the palm for extrava- 



300 THE FUTURE OF SOUTH AMERICA 

gance belongs to the history of the early mining days 
in Brazil, when horses were shod with gold, when law- 
yers supported their pleadings before judges with gifts 
of what appeared at first sight to be the choicest 
oranges and bananas, but proved to be solid gold imi- 
tations, when guests were entertained at dinner by the 
discovery of gold pebbles instead of grains of corn, 
when nuggets were the most convenient means of ex- 
change in the money market." An English authority 
has estimated that the total output up to recent years 
was two hundred million pounds sterling. With the 
gradual exhaustion of the surface deposits and the im- 
possibility of continuing by primitive methods, how- 
ever, mining has been more and more neglected. At 
present, modern methods and machinery are once more 
bringing the industry into prominence, and a consider- 
able amount of gold is again being taken out by the 
few companies that have already installed up-to-date 
plants. This State also possesses immense deposits of 
iron ore which are likely soon to be worked. 

The official reports enumerate over twenty minerals 
and stones found in Brazil, which offer opportunities 
for money making. The diamond mines of the region 
of Diamantina were discovered in 1729. There are some 
romantic stories told of these early discoveries. The 
Regent diamond, weighing nearly an ounce, found by 
three convicts, is said to have secured their pardon. 
The Estrella do Sul, now belonging to the Rajah of 
Baroda, India, picked up by a slave who gave it for his 
freedom, was the highest ransom ever paid for liberty. 
When uncut it weighed two hundred and fifty carats, 
and about half that when cut, its value being fifteen 
million dollars. For many years, until the South 



BRAZIL 301 

African mines came into competition, this region was 
the chief source of the world's supply. Black diamonds 
are found, also amethysts, tourmalines, topazes, and 
stones of less value. 

The stock-raising industry of the country has long 
been firmly established, and is steadily advancing. In 
the State of Rio Grande do Sul, cattle have been grown 
and killed for their meat and hides, and considerable 
amounts exported. In the States of Minas Geraes, Sao 
Paulo, and Rio de Janeiro, this industry is progressing 
rapidly, and to it is added dairying, which until a few 
years ago was considered unimportant. As better 
facilities are provided for such work and for shipping, 
the south of Brazil will surely take a still larger share 
in foreign trade. Many claim that cattle raising offers 
to-day the best opportunity for money making of any 
industry in Brazil. In the city of Sao Paulo, a packing 
plant of latest efficiency has been opened, and more are 
contemplated. 

A country so largely agricultural in its interests would 
not be expected to have great manufactures, but Brazil 
has made a beginning in some plants, especially for 
making her own products into goods. The first textile 
mill was started in Brazil only twenty years ago, but 
since then, on account of better machinery and increased 
facility of transportation, the industry has grown re- 
markably, perhaps making greater progress than any 
other. Five of the larger cotton mills in the federal 
district of Rio de Janeiro employ ten thousand opera- 
tives, and have an output of about eighty million yards 
a year. Four mills in Petropolis manufacture an aver- 
age of twenty million yards, while the mills in Sao Paulo 
produce about one hundred million yards. As the 



302 THE FUTURE OF SOUTH AMERICA 

stock in these companies yields a good profit on the 
investment, protected by Brazil's high tariffs, there is 
yet possibility for future extension of the industry. 

There are several large shoe factories in Sao Paulo 
and Rio de Janeiro, and lately the tanneries of Rio 
Grande do Sul have been turning out leather in good 
qualities and many grades, comparing favorably with 
that imported from abroad. In the district of Rio de 
Janeiro, the Tramway, Light, and Power Company of 
that city has been obliged to enlarge its plant to over 
eighty thousand horse power to meet the increasing 
demand for electric power on account of the establish- 
ment of new factories and the enlargement of old ones. 

In addition to the flour mills, shoe, shirt, collar, stock- 
ing factories, etc., already established, may be men- 
tioned among new industries a plant for the manu- 
facture of hydrogen gas to be used in welding and cut- 
ting iron; a railway car assembling works; a fiber 
plant; steam laundry, etc. 

Sao Paulo ranks near to Rio de Janeiro in industrial 
importance. Besides the manufacture of sugar, alcohol, 
jute, beer, chemicals, hats, paper, matches, leather, 
shoes, and furniture, there have lately been started lace 
and silk factories in the State. The old power plant of 
the Sao Paulo Tramway, Light, and Power Company 
has a capacity of thirty-two thousand horse power, and 
a new plant of sixty-two thousand five hundred horse 
power has lately been built by the company at Sorocabo, 
Sao Paulo, for the supply of additional power to Sao 
Paulo city and other cities and towns. 

In the State of Parana, the lumber industry, while 
still in its infancy, is making great progress. Its an- 
nual production will soon be increased by the growing 



BRAZIL 303 

output of the two large sawmills recently built, which 
are equipped with the most modern American machin- 
ery. They are cutting Parana pine and sending the 
product to other parts of the country and to Argentina. 
Cedar for cigar boxes is also being shipped from this 
State to Rio de Janeiro and Bahia. 

Doubtless the manufacture of cotton goods, shoes, 
and a few other things is natural and has come to stay. 
I cannot help feeling, however, that Brazil is sure to 
witness a tariff revision from which many manufacturers 
of miscellaneous goods will suffer. Hence I am not so 
enthusiastic over Brazil's manufacturing possibilities as 
over her agricultural, pastoral, and mining opportunities. 

The many harbors on the coast of Brazil afford great 
opportunities for trade. Some of these are rendered 
dangerous by shifting sand bars and coral reefs, but 
improvements are constantly being made. A peculiar 
feature on the southern coast is the chain of lakes and 
lagoons lying parallel to the coast line. In some of 
these the water is fresh, in others brackish; some are 
entirely closed, others connected with each other by 
small creeks; a few have narrow outlets to the ocean, 
perhaps disappearing in the dry season. Enlarged and 
deepened, these lakes might form ideally safe harbors 
for vessels engaged in the trade of the world. In the 
early part of 1913, Brazil felt a severe financial, indus- 
trial, and commercial setback, and the economic 
prosperity enjoyed during four years previous was 
temporarily checked. The drop in coffee and rubber, 
the two mainstays of the country's source of wealth, 
occurred at the same time as her reduced imports and 
customs revenue. Conditions, however, have since 
improved. 



304 THE FUTURE OF SOUTH AMERICA 

Not only does a decline in the price of coffee and 
rubber give the Brazilians less money, but they then 
spend less on imports, which greatly reduces the income 
of the federal government. As I have suggested, the 
government is considering the revision of the present 
high protective tariff which imposes rates as high as 
three hundred per cent., excluding many articles not 
manufactured in Brazil, and a readjustment of certain 
schedules is advocated, in order to make the tariff sci- 
entific, and to reduce duties generally in order to col- 
lect more revenue. This proceeding would at the same 
time benefit the people by reducing the enormous cost 
of living in Brazil. 

A Portuguese navigator discovered Brazil, landing 
in 1500 not far from the present site of Bahia. By 1549 
the country had become known as Brazil, from the red 
dyewood which its forests produced, and which had 
before this time been brought from the East and known 
as "Brazil wood." The Portuguese Crown claimed the 
country and divided it among nobles, who received a 
number of Indian slaves in addition to grants of land, 
and who were to settle and colonize. The first Jesuits 
who came obtained complete control over the Indians, 
and in order to prevent these aborigines from being 
sold into slavery, recommended and encouraged the 
importation of slaves from Africa. Up to 1640, French, 
Dutch, and British attempted to gain a foothold in 
Brazil. The Dutch in 1631 took possession of Pernam- 
buco, and extended their power over a large territory 
in that region; but in 1648 they were finally forced to 
abandon the country. 

Rio de Janeiro was made the capital, when, in 1640, 
Brazil became a viceroyalty. As a result of Napoleon's 



BRAZIL 305 

invasions of Portugal and Spain, early in the nineteenth 
century, the Portuguese King John came to Brazil. 
He brought his family and court, and opened the ports 
of the country to the commerce of the world. In 1908 
the centennial of this beginning of commerce was cele- 
brated in Rio de Janeiro by an exhibition of Brazilian 
products. In the fifteen years of King John's stay, he 
established schools and promoted the interests of the 
colony in many ways. On his return to Portugal, in 
1821, he left his eldest son, Dom Pedro, as regent. This 
son being in sympathy with the movement for inde- 
pendence from Portugal, the following year proclaimed 
Brazil independent, and was himself crowned as em- 
peror. Under his rule the country prospered, and nine 
years after he abdicated the throne in favor of his 
infant son. A regency governed the country until this 
young son attained his majority, when he was crowned 
as Dom Pedro II. In 1889 the people of Brazil resolved 
to change their government from a monarchy to a re- 
public, and this was accomplished peacefully and the 
republic proclaimed November 15, 1889. In 1893, 
there was a revolution which was checked by the United 
States, the blockade of the harbors being broken by our 
navy. 

A constitution was adopted in 1891, making the re- 
public a federal union of States. The government, mod- 
eled after ours, is divided into the same three branches. 
The legislative department consists of the National Con- 
gress, composed of the Senate and Chamber of Deputies. 
The Senate numbers sixty-three, three for each State 
and three for the federal district, elected by direct vote 
for nine years, but renewed by thirds every third year. 
The members of the Chamber of Deputies are elected 



306 THE FUTURE OF SOUTH AMERICA 

also by popular vote, for a term of three years, and in 
the proportion of pne to every seventy thousand in- 
habitants. Each State, however, must have no fewer 
than four deputies. Congress meets regularly every 
May for four months, but may be called in extra ses- 
sion or prorogued by the President. All male citizens 
over twenty-one years of age are entitled to vote. 

In discussing the various South American govern- 
ments, I have suggested that the requirements for vot- 
ing have no relation to the number of people who actu- 
ally cast a ballot. The attitude of the Brazilians on 
this matter is well illustrated by the following state- 
ment of one of my acquaintances in Rio de Janeiro : 

"You ask why we do not bother to vote? Let me 
answer by explaining that politics is a profession down 
here which we business men let alone. Were we in 
politics and wanted an office, we would vote early and 
often; but why vote unless one wants an office? You 
would not expect to butt in on a consultation of doctors? 
As long as things are satisfactory to us — why vote? 
One only makes enemies by voting. 

"You people in the United States think that any one 
can be a politician. You all think that you are experts 
on every subject. Your voters are now asking for the 
referendum and recall. How stupid! Of course our 
countries are not true republics, and we have much to 
learn about good government, but we are not so stupid 
as are your people. We know enough not to jump from 
the frying-pan into the fire. We believe that every one 
should have a right to vote, but that none should ex- 
ercise it excepting in emergencies." 

The executive power is vested in a President, with a 
cabinet of seven ministers appointed by him, and re- 



BRAZIL 307 

sponsible to him only. The President and Vice- 
president are elected by direct vote for a term of four 
years, and may not be reelected for the term immedi- 
ately following their own. 

Directly after the country became independent from 
Europe, the government issued a decree allowing any 
one to establish private schools. By the present con- 
stitution, Congress has power to develop literature, 
arts, and sciences, but instruction must be secular if 
carried on in public institutions. The public-school 
system is receiving great attention in all States, and 
in some of them primary education is compulsory. 
To aid industrial education, the government will help 
a State government, city, or private school which 
reaches a certain standard. 

Though there are no universities, as we understand 
the word, yet there are excellent art and technical 
schools maintained by the government, and several of 
the larger cities have very good faculties for law, medi- 
cine, and engineering. Rio de Janeiro and Bahia have 
celebrated medical schools; Pernambuco, Bahia, and 
Sao Paulo fine law schools; and Ouro Preto boasts a 
classical mining school. The aggregate of educational 
institutions is more than thirteen thousand, with an 
attendance of about seven hundred and fifty thousand, 
this not including the various agricultural colleges. 

January 1, 1914, the total extent of railways in 

Brazil was 15,272 miles, as follows: 

Miles 

Federal lines 2,188 

Private lines 5,727 

Leased lines 3,454 

State lines . % 3,903 

Total 15,272 



308 THE FUTURE OF SOUTH AMERICA 

Originally, railways in Brazil were established for 
the purpose of communication between the interior 
contributing territory and the coast distributing points. 
Pernambuco is the focus of one system, Bahia of an- 
other, Rio de Janeiro of a third, Sao Paulo and Santos 
of a fourth, serving the coffee region, and Rio Grande do 
Sul, of a fifth system. Realizing the importance of 
connecting these systems by interior railways, both 
for purposes of communication and to encourage in- 
ternal settlement and trade, the government has built 
certain connecting roads. To-day it is possible to 
travel by rail between Rio de Janeiro and Montevideo, 
a distance of 1,967 miles. All the larger cities have 
street railways, many of which are electric lines. Enor- 
mous power for electrical purposes exists in the many 
streams of the country, and it is proposed to electrify 
certain parts of the railway lines now in operation. 

In connection with the railway problem, I want to 
introduce the following remarks of a man in Rio de 
Janeiro, which illustrate a financial mistake that we 
have made in South America. He said: 

"You North Americans have been foolish in repre- 
senting yourselves to have more money than you really 
have. In fact, most of your financial operations in 
South America have been stupid. You are too anxious 
for quick profits. You are more interested in selling 
out than in standing by and working your properties. 
Even the valuable traction, light, and power properties 
which you have here may some day suffer from the 
huge capitalization which you have given them. 

" Do you know that even the natives refer to the street 
cars as 'bonds' instead of ' trains'? Ask the native 
when the next train or street car is due and he may not 



BRAZIL 309 

understand you, but ask him when the next bond is 
due, and he will answer at once. This is owing, I sup- 
pose, to the fact that they have heard the North Ameri- 
cans down here talk more about the securities than 
about the track or cars. I strongly advise you to cease 
talking so much about money, business, and the like." 

The many navigable rivers are the excuse for not 
having more railroads in Brazil. Roads from one city 
to another vary in excellence, those through the forest 
being merely trails. Between some places there are 
regular lines of automobile service. Considering the 
size of the country, however, only the faintest begin- 
ning has been made toward railway and highway 
building. I seldom advise investing money in any new 
railways; but as railways are gradually reorganized, 
they usually offer great opportunities for money mak- 
ing. I am especially enthusiastic over the railway 
possibilities of southern Brazil. 

I was greatly impressed by southern Brazil. This I 
approached from the seaport of Santos, nearly a thou- 
sand miles north of Buenos Aires. Santos is the great- 
est coffee port of the continent. Formerly it had the 
reputation of being a nest of yellow fever; but the sani- 
tation of the city has now been accomplished by means 
of a perfect system of drainage and a good water 
supply. The old part has narrow streets, hardly more 
than alleys, but away from the business section I found 
the wide streets and fine houses that I had learned to 
expect in these South American cities. Good pave- 
ments, electric cars and lights, telegraph and telephone 
service make it a well-equipped, modern city. The 
only thing I do not like about Santos is the heat. 

From Santos I went ninety miles inland, up about 



310 THE FUTURE OF SOUTH AMERICA 

twenty-five hundred feet to the city of Sao Paulo on 
the high lands of southern Brazil. This is the great 
money-making center of Brazil to-day. It is the capi- 
tal of the state of the same name, and is a fine progres- 
sive city. Here there are practically no black people, 
but there are many Italians from northern Italy. As 
in other up-to-date South American cities, great sums 
of money have been spent here on sanitation, until now 
it is one of the most healthful cities in the world as well 
as one of the handsomest. Its position and altitude 
would seem to make it unnecessary for it to be any- 
thing but healthful. It stands upon several hills, and 
has an alert air of prosperity and content. Its eleva- 
tion gives it a delightful climate, rivaling that of Los 
Angeles or San Diego. 

Sao Paulo is said to be in advance of all other cities 
of the continent in its educational advantages. Though 
Roman Catholicism is the religion of the State, there 
is an undenominational college called Mackenzie Col- 
lege, founded by a New York man of that name in 
1889, who gave forty-two thousand dollars toward the 
erection of the building. It is co-educational, and is 
affiliated with the University of the State of New York. 
It is well patronized, having graded and normal depart- 
ments, and a self-supporting manual training school. 
There are also high-grade institutions of a sanitary 
character — bacteriological, Pasteur, Serotherapic — 
and fine large hospitals for general and special diseases. 
Of course, Sao Paulo is up-to-date in all different lines. 
Still there are many money-making opportunities left 
for the man with capital. For instance, twelve per 
cent, interest can be obtained there from good first 
mortgage loans! 




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BRAZIL 311 

Poets, artists, travelers alike rave over Rio de Janeiro 
and its harbor, comparing it to almost every known 
beauty spot in the world. Hence I was prepared for 
Rio. Truly it is beautiful ; but it is too hot for me. It 
is the Washington of Brazil, and will always be an 
important city; it is now the largest Portuguese city in 
the world — but I would rather invest my money in 
Sao Paulo. The name " River of January" implies 
that the discoverer thought he had found the mouth 
of a river, but it is a bay and not a river. The wonder- 
ful harbor is so large that the pictures you see of it are 
always labeled "part of the harbor," etc. Though it 
is nearly a hundred miles in circumference, the large 
inner part of it is so cut off by points and islands that 
its size is not realized until one sails around it. 

President Rodriguez Alves was the man who put 
into execution the plan for the regeneration of Rio de 
Janeiro from a dirty city of narrow streets, often a 
hotbed of yellow fever, which it was as recently as 
1903, to the city we see to-day. The plan, approved 
in the fall of 1903, included "the construction of a 
great quay, furnished with storage warehouses, rail- 
ways, and electric lights, with a parallel avenue one 
hundred and twenty-five feet wide and two miles long; 
the improving of a cross canal to the sea by making it 
a solidly walled stream, with an avenue on each side 
shaded with palms; the lifting of the railroad from 
street level to a viaduct sixteen feet above; increase of 
the water supply, renovation of the sewerage system 
with all modern improvements; the removal of several 
hills ; the filling in of large sections, and the widening of 
a number of streets." 

A new avenue was also formed in the heart of the 



312 THE FUTURE OF SOUTH AMERICA 

city, a mile and a quarter long and one hundred and 
twenty feet wide. In doing this last-named piece of 
work, workmen toiled night and day, three thousand 
of them, in three months demolishing six hundred 
buildings, thus opening a space two hundred and thirty 
feet wide, sixty-five feet each side for the new build- 
ings, one hundred and twenty for the roadway, and 
twenty for each sidewalk. " Along the center of the 
avenue a row of Pao Brazil palms was planted in beds 
sixteen feet long, and fifty-five posts bear each three 
electric lights." These details are given simply to 
show what a stupendous undertaking was accomplished 
in three months; and all the while other work was going 
on in various parts of the city. It would seem as if 
the favorite "maflana" of the Spanish had no synonym 
in the language of Brazil, when it comes to rebuilding 
cities. All this improvement work was begun in 1904 
and practically finished in 1907. 

This Avenida do Rio Branco, as it is called, is claimed 
by Brazilians to be the most beautiful street in the 
world. • It contrasts very interestingly with the fash- 
ionable shopping street, formerly named "Cuvidor," 
now "Moreira Cezar," which is hardly twenty feet 
wide, and so crowded that carriages and carts are not 
allowed, pedestrians using the whole street. In this 
connection, I cannot help suggesting what a great op- 
portunity awaits many cities in the United States 
which will operate such extensive building campaigns. 
Any city could do this, and the expense would soon be 
made up in increased growth and wealth. 

It takes a steamer about two days to reach Bahia 
from Rio de Janeiro. This is the " up-and-down-stairs " 
city of Brazil — the upper part, as you would ex- 



BRAZIL 313 

pect, the residential, and the lower portion, the business 
section. Elevators convey people from one to the other 
level. Many of the houses have stood unchanged since 
the eighteenth century, so that the place has a some- 
what quaint appearance. This is the great cocoa port 
of Brazil, furnishing about one fifth of the world's 
supply, and the State also produces almost everything 
else, from nuts to real diamonds. Even the sand is 
exported, some at least being worth one hundred dol- 
lars a ton, the kind called monazite, rich in thorium 
silicate, used for electric lights. 

The population is about one hundred and fifty thou- 
sand, and most of the people are black, very black. 
These colored people, combined with the heat, made 
me long again for Sao Paulo and southern Brazil. 
Nevertheless, I found Bahia very much better than it 
is described by most travelers. Huge sums have been 
spent upon docks. The upper city streets are being 
widened; a beautiful drive is being made along the 
ocean front, and many other improvements are being 
instituted. Although I should not care to live in 
Bahia, yet I believe it will some day be a great city. 
Certainly it should not be passed by salesmen and 
others looking for South American trade. 

It takes about another day to go from Bahia to 
Pernambuco, a city of about one hundred and fifty 
thousand. The latter city inspired a famous Brazilian 
poet to say: "Hail, beautiful land! Pernambuco, 
Venice transported to America, floating on the seas!" 
The name is more properly "Recife," from a substan- 
tial reef off shore forming a fine natural breakwater, to 
which the Dutch made some artificial addition, with a 
powerful light on the end. More prosaic travelers 



314 THE FUTURE OF SOUTH AMERICA 

state that it is built on marshy ground reclaimed from 
the sea. It has many lagoons and bridges, and is pro- 
vided with all the modern improvements as to lighting 
and transportation, and its exports of cotton and sugar 
exceed those of any Brazilian city except Rio de 
Janeiro. At the present time, landing at Pernambuco 
is difficult; but when this is remedied, it should grow 
very rapidly. It is the only large South American city 
which has not yet had a real estate boom, and I am 
told that there are great opportunities there for mak- 
ing money. 

Of Pernambuco one of the Brazilians told me: 
"When you return to the United States, tell your 
friends to study Pernambuco. A glance at the map 
shows that this is the nearest port to England, Ger- 
many, France, or in fact any other part of Europe. 
Furthermore, it is only three or four days from the 
west coast of Africa. What, however, should interest 
your people most about Pernambuco is the fact that 
it is the first port which steamers from North America 
will naturally touch at on their route south, and the 
last port of all on their route north. 

" Pernambuco is also the port for a very rich coun- 
try. Even the province of Pernambuco is very rich of 
itself. Up to the present time, this city has been 
greatly handicapped by landing facilities. A bar ex- 
tends outside upon which great breakers roll. Ships 
have to load and unload quite a distance from shore. 
For instance, to unload passengers, a boom and a der- 
rick are needed. When I was there last, it was com- 
paratively calm, but it was necessary for me to sit in a 
basket and be hoisted up in the air, and then lowered 
over the side of the ship into a small boat. Harbor im- 



BRAZIL 315 

provements are already under way, and it will not be 
long before Pernambuco will become well known and 
important." 

Para stands for rubber, so that is what one always 
thinks of when the place is mentioned. The old name 
is Belem, but one may take his choice, as the full cor- 
porate name is Santa Maria de Nazareth de Belem do 
Grao Para! Within a few years it has become a large 
city of two hundred thousand inhabitants, having, as 
do most of these cities, the modern conveniences and 
utilities, but also possessing much interest on account 
of its wealth of relics associated with its romantic 
history. It is described as " charmingly clean and 
picturesque." A local proverb runs, "Who comes to 
Para is glad to stay; who drinks assai goes never away." 
Assai is a most refreshing beverage made from the 
fruit of the assai palm. 

Of course it is hot and damp in Para, and therefore 
I would not want to live there. On the other hand, it- 
is surely destined to become the New Orleans of Brazil. 
It is impossible for the human mind to conceive the 
wealth and money-making opportunities in the great 
Amazon basin for those willing to pay the price, and 
Para is likely to become the great gateway through 
which this wealth is taken. But living in such places 
has other difficulties besides the climate ; one is the lack 
of social life. A friend in Para said: 

"In this city of two hundred thousand inhabitants, 
there are at present only six citizens of the United 
States of America. As a result, we are lonesome and 
often homesick. On the other hand, do you know that 
we always have a sort of dread whenever we hear of 
any new 'Yankees' (as we all are called down here) 



316 THE FUTURE OF SOUTH AMERICA 

coming to Para. They almost always say something 
stupid which takes us weeks to live down. Let me 
give you an illustration. A recently arrived Yankee 
said: 'Yes, this is a fine country; all that is needed is 
for some of us Americans to come down and run it.' 

" The South Americans also resent our manners. 
They accuse us of being indifferent and rude, and 
the free and easy airs of our women folk are utterly 
beyond them." 

In conclusion, it is my belief that Brazil is by nature 
the richest country in the world. Some day it may 
almost feed the entire Western Hemisphere. Its cli- 
mate is better than is generally supposed, and there is 
no physical reason why — with motors and agricultural 
machinery — man cannot live in almost any part of 
Brazil and be comfortable and happy. This day, 
however, is far distant in the future. In short, Brazil 
has a great future; but this future is a long distance 
away. Some day Brazil may be the most influential 
country in the Western Hemisphere, but it will never be 
so in our time. So far as we need seriously consider the 
future of Brazil, we can confine our efforts to South- 
ern Brazil and certain few other temperate sections. 

Through the courtesy of the President of Brazil, 
Doctor Wenceslao Braz, I was able to interview 
the government of Brazil, through Doctor Miiller, 
who, the Brazilians claim, knows more about their 
country than any other person. Doctor Miiller was 
the foreign minister, an official corresponding to our 
Secretary of State. He was one of the founders of the 
republic, the first governor of the State of Santa Cath- 
arina, and has since been a deputy and senator, be- 
sides holding other important positions. 



BRAZIL 317 

In 1913 Doctor Miiller came to the United States 
to return officially the visit which former Secretary of 
State Root had made to Brazil a few years before. 
While in the United States, Doctor Miiller was the 
official guest of this nation as well as of most of the 
principal cities. One of the honors accorded to him 
was the honorary degree of Doctor of Laws, of Har- 
vard, which was conferred by President Lowell in the 
following words: 

"Lauro Severiano Miiller, Brazilian Minister of 
Foreign Affairs, maker of harbors and railroads, beau- 
tifier of a beautiful city, statesman who has waged war 
against slavery and disease, a soldier who strives for 
peace and for that friendly spirit which, pervading the 
Americas, will promote the welfare of the western 
world." 

Upon meeting our most unselfish Ambassador Mor- 
gan and myself in behalf of the government, Doctor 
Miiller bluntly said: 

"Well, I am glad to greet, here in the United States 
of Brazil, a man from the United States of North 
America." (I was much interested to hear him refer 
to the United States of North America. I suppose he 
rightly considers his own country as much a "U. S. A." 
as our country. I am afraid it handicaps us seriously 
in South America to refer to our country as if 
it were the exclusive United States of America. 
They want us to use the words "North America," 
or else to coin some new word such as Usono, or Area, 
which would refer exclusively to our country, as the 
word Brazil refers only to theirs.) He then continued: 

"It is usually necessary for me to go to London or 
Paris, in order to meet persons from Philadelphia, New 



318 . THE FUTURE OF SOUTH AMERICA 

York, Chicago, and your other fine cities. Very, very 
few of your people come here. There are some fine 
fellows here from your country connected with the 
Rio de Janeiro Light and Power Company. There are 
a few connected with some of your big corporations, 
such as the Standard Oil, United States Steel, Inter- 
national Harvester, National Cash Register, Otis Ele- 
vator, and the like. The colony from your country is, 
however, very small. It should be much larger. With 
several thousands of fine men here from France, Eng- 
land, and Germany, it seems wrong to us that there 
should be only a handful from the great United States 
of North America." 

(Readers must forgive me for being inconsistent in 
the use of the name of our people. The South Ameri- 
cans refer to us as North Americans, but the Cana- 
dians object to our assuming that name, for they are 
as much North Americans as are we. It is very 
awkward all round. To say "United States-ians" is 
very awkward. We certainly do need a real and dis- 
tinctive name.) 

Said I: "You state that more people from my coun- 
try should come to Brazil. May I ask you to tell me 
what you have to offer my people? Perhaps they have 
a misconception about Brazil. Our writers refer to 
Argentina and Chile as the progressive and temperate 
countries of South America; but include Brazil among 
the tropical countries. I suppose this is largely due to 
the false teachings of the geographies which the children 
of our country study. These textbooks devote practi- 
cally all their space to northern Brazil, and the pictures 
show only jungle, tigers, and black men. It is true 
that up to the present time the principal exports of 



BRAZIL 319 

Brazil have been rubber and coffee, and your most 
famous river is the Amazon, which traverses a most 
tropical country. To judge Brazil, however, by the 
Amazon Valley, is as unfair as to judge my own coun- 
try by the deserts of Arizona and New Mexico. Have 
you not the largest area available for the raising of 
cotton and the largest area of forest, including the most 
valuable of woods? Have you not fertile plains for the 
raising of cattle which some day will become great 
grain producers? In view of all that appears in the 
papers about Brazil's poverty, I believe that some facts 
as to Brazil's wealth should be published." 

The face of this great statesman then lighted up and 
he replied: 

"Ah, our greatest assets have been our greatest 
handicaps. A great asset, for instance, is our high 
table-land, three thousand feet above the sea, contain- 
ing deep, rich soil, wonderfully watered by numerous 
rivers, and possessing the finest climate in the world. 
But unfortunately this high table-land has greatly re- 
tarded the development of Brazil. Until compara- 
tively few years ago, it has been very difficult to reach. 
The railroads have run only along the coast, and did 
not, until recently, ascend this table-land. Hence this 
great plateau has been almost unknown, having been 
shut out from the world by the mountain ranges ex- 
tending along the eastern coast. 

"Another great asset of Brazil is our rivers. As you 
suggested, we have the greatest in the world. These 
are so large and numerous that the transportation sys- 
tem of Brazil has become a river system. Each river 
has its own steamers which ply back and forth, as do 
the railroads across your prairies. Brazil probably has 



320 THE FUTURE OF SOUTH AMERICA 

more steamers engaged in river traffic than any other 
country in the world. 

"This mountain range a few miles back from the 
coast and these many navigable rivers have resulted 
in the settlements of Brazil being along the coast and 
on the banks of these streams. Of course, such loca- 
tions are apt to be low, hot, and perhaps unhealthy. 
As these coast and river ports have been practically all 
that your people have seen of Brazil, they have ob- 
tained a very incorrect idea of it. As persons who have 
not been here take their opinions from those who have, 
this causes all you people to be prejudiced against my 
native land, believing it to be only a hot, low, and un- 
healthy country. Hence I say that our greatest as- 
sets have been our greatest handicaps." 

In this connection, let me add that my personal ex- 
perience in Brazil convinced me that the government's 
position is correct. When we landed in the harbor of 
Santos, the great coffee port, it was so hot and humid 
that I wanted to leave at once. It was very uncom- 
fortable and depressing. I therefore took the first train 
to Sao Paulo (about ninety miles inland and twenty- 
five hundred feet high), on the eastern edge of the 
plateau to which Doctor Miiller referred. Within 
half an hour after the train left, it became cooler, and 
when we arrived at Sao Paulo, it was just delightful. 
Although I have traveled extensively in both the Ameri- 
cas and Europe, I believe that the climate of southern 
Brazil is the finest I have ever seen. And yet there are 
over a thousand miles of this country, which covers an 
area equal to our entire great central west, tributary 
to Chicago. The country is rolling, about half being 
wooded and the rest prairie. It is very much of the 



BRAZIL 321 

same character as were Indiana and Illinois fifty years 
ago ; but with a finer climate and more rivers. 

The maximum temperature of these high lands of 
southern Brazil is about 80°, and the minimum about 
30°, with an average of nearly 60°. There is a rainy 
season beginning in October, which corresponds with 
our April, and then it rains nearly every day for an 
hour about 4 p. m. Once in a while there is a hard 
rain lasting a day or more; but most of the time the 
sun shines beautifully. There is almost always a cool 
breeze, and blankets are needed every night in the 
year. Experts tell me that the climate of southern 
Brazil, as well as the soil and scenery, is actually su- 
perior to that of California. Moreover, the water 
powers of Brazil are a story by themselves, for the 
country has the greatest amount of undeveloped water 
power of any country in the world. 

From a study of the statistics of Brazil, it is evident 
that to-day the country is very dependent upon the 
price of coffee and rubber. Therefore I said to Doctor 
Muller: 

"I think that our bankers will ask, ' Should not the 
products of Brazil be more diversified? Not only are 
coffee and rubber very fluctuating in price, but, to a 
certain extent, they are luxuries. No country which 
lives on luxuries has stable business conditions. Luxu- 
ries present, according to statistics, the greatest profit 
during times of prosperity, and suffer the severest 
losses during periods of depression. What is Brazil 
doing to remedy this? Are you spending money on 
scientific research in the development of the cotton 
and other industries?'" 

Again Doctor Muller warmed up, as he said: 



322 THE FUTURE OF SOUTH AMERICA 

"Yes, we have heretofore perhaps 'had all our eggs 
in one basket/ or at least in two baskets, coffee and 
rubber; but, as you suggest, those days are over. The 
government of Brazil is now opening many agricultural 
schools, and is making great efforts to develop the 
raising of cotton, cacao, and cocoanuts in the north, and 
of beef, wool, and cereals in the southern table-lands. 
In twenty-five years Brazil will be the greatest ex- 
porter, not only of coffee and rubber, but also of 
cotton, woods, beef, and possibly cacao, palm oil, and 
other products. 

"Already you will find greatly diversified agricul- 
ture in the southern States of Rio Grande do Sul and 
Santa Catharina. There you will see vineyards and 
fig trees, rice and potatoes growing within short dis- 
tances of one another. Concerning Santa Catharina, 
of which I was the first governor, you may be interested 
to know that some time ago Emperor William of Ger- 
many sent experts to South America to report on the 
most attractive and productive portion of the entire 
continent. After an exhaustive study, the report was 
made that Blumenau (in the eastern part of my old 
State) is the center of the finest known agricultural 
and climatic conditions of the entire world. You may 
also be interested to know that as a result of this report, 
German colonists went there ten years ago, and pur- 
chased land for two milreis (about sixty-five cents of 
your money) per acre, which land to-day they can sell 
for twenty times that figure. Perhaps Germany sets 
your country a good example by such work. Would n't 
it do much to cement the relations between the United 
States of Brazil and the United States of the North if 
your country would send such a commission to study 



BRAZIL 323 

South America, and report upon the relative prospects 
of the different countries?" 

Let me add that there is much in this suggestion. 
At the present time, immigrants are led, or misled, by 
the beautiful booklets of the various steamship com- 
panies and the pretty folders of the railroads. As these 
lines are competitive and money-making corporations, 
they simply employ an advertising agency to prepare 
advertisements which will "get business." This often 
results in much misfortune, both to the poor immi- 
grants and to the country to which they come. Even 
the governments are often parties to such misleading 
of people, either independently, through booklets and 
other advertising matter which they themselves issue, 
or collectively, through very useful organizations like 
the Pan-American Union, which are not allowed to 
unfavorably compare the different countries. Reports 
for immigrants and others should be issued by an inter- 
national body which has in view the good of the world 
as a whole, and is not working for any one country. 

Until such a day comes, readers who feel that they 
cannot afford the services of some private organiza- 
tion, may write our Department of Commerce at 
Washington when desiring information about South 
America. 

I next asked the Foreign Minister relative to the 
government's position on the tariff question. All 
South America is cursed with high tariffs, which have 
both greatly retarded growth and have kept business 
in a state of confusion. We in North America know 
how business is upset by a discussion of the tariff 
question, but this applies here only to imports. More- 
over, in this country all our States come under the 



324 THE FUTURE OF SOUTH AMERICA 

same tariff laws, and we have only two foreign neigh- 
bors — Canada and Mexico. In South America there 
are twelve countries all jumbled in together, all having 
import duties, and some having export duties as well. 
Brazil, moreover, not only has both import and export 
duties, but each of her twenty-one States has separate 
and independent export duties. Not only may the 
export tax on the same article be different for each of 
the different States, but there is an export duty on 
articles sent from one State to another. For instance, 
the export duty on potatoes is said to be so high that 
the farmers of one State cannot afford to ship them to 
an adjoining State, but will let the hogs eat them; 
while the people of the adjoining State will import pota- 
toes from Europe. This not only handicaps industry, 
but greatly increases the cost of living for the people 
of Brazil. Moreover, manufacturers in our own coun- 
try are also handicapped by these high tariffs. Hence 
I shaped my question as follows: 

"When inquiring about conditions in Brazil, I have 
always been referred to your tariffs. For instance, if 
I speak to a European about doing business in Brazil, 
he replies that the greatest handicap to selling goods 
here is your tariffs. If I ask a banker as to credits in 
Brazil, he immediately begins to tell about your 
tariffs, which, he claims, upset credit conditions. Citi- 
zens of North America are especially interested in this 
question of Brazilian tariffs at the present time. May 
I ask if there is any hope for a scientific revision of your 
tariffs in the near future?" 

In reply to this question, the Minister said: 
"The government recognizes that this is a very im- 
portant question. Under the direction of the Ministry 



BRAZIL 325 

of Finance, careful study of the tariff is now being made. 
You must remember, however, that tariffs are very 
troublesome to all countries. It is very difficult to 
make changes — especially downward — owing to the 
concentrated opposition of a small number of man- 
ufacturers against a scattered and unorganized effort 
of the people as a whole. Moreover, tariffs provide a 
very easy way to raise revenue and employ a lot of men. 

" You may, however, state that the government, the 
manufacturers, and the people are pretty well convinced 
that duties are now fully high enough, and that any 
further change must be downward. In other words, 
tariff conditions will be no worse, and the chances are 
fairly bright that a change for the better will be made. 
In the meantime, I urge the complainants in your 
country to study our tariffs, a schedule of which can 
readily be obtained from your government's Foreign 
Trade Department in Washington. 

"In this connection, I will also add that my country- 
men have perhaps overestimated the importance of 
manufacturing, or rather have underestimated the 
greater importance of agricultural and pastoral pur- 
suits. Hence, the policy of my government to-day is 
to extend and encourage cattle raising, agriculture, and 
all similar undertakings. As suggested, the govern- 
ment is now realizing that the great future of Brazil 
is to come through agriculture. Brazil, with its fertile 
soil, humidity, sunshine, and great rivers, is destined 
to feed the world. Wise will your people be to recognize 
this. Do not let your competitors scare you about 
our tariffs. Remember there is neither an export nor 
import tax on money, and it is money that you all 
really want." 



326 THE FUTURE OF SOUTH AMERICA 

It is surely the policy of the different State govern- 
ments to encourage agriculture more, and manufactur- 
ing less. Although it is often a nuisance to have State 
governments strong and independent with a weak fed- 
eral government, such as exists in Brazil, yet this con- 
dition presents some advantages to the business men 
and others of South America. States which are so com- 
petitive and jealous of each other, will bid against 
one another by offering concessions and other in- 
ducements to capital. Thus you or I now going 
to Brazil can get land much cheaper, and other 
favors besides, which would be impossible were the 
States more closely federated under a strong central 
government. 

I also learned that the government recognizes that 
its own credit is very bad at times, and that the per- 
manent refunding of its indebtedness is most intimately 
related to a revision of its tariff. It also recognizes that 
the credit of its merchants is sometimes temporarily 
under a cloud. On the other hand, the government in- 
sists that it is a great mistake for foreigners to lump all 
Brazilian firms together as "good, bad, or indifferent." 
Both the stupendous size of Brazil and the different 
policies of the various States make it foolish for one to 
rate all Brazilian merchants alike. Moreover, our esti- 
mate of these merchants should be given all the more 
care and attention as the products of the different 
sections continue to vary. For instance, the coffee 
States, such as Sao Paulo, Minas Geraes, and Rio de 
Janeiro, as well as the rubber States, such as Ama- 
zonas, Para, etc., sometimes suffer greatly, owing to 
the decline in the prices of coffee and rubber, when 
business is good in some of these northern cities, owing 



BRAZIL 327 

to the large cacao industry developing there, and in- 
creased prices for cacao. 

Another interesting feature in connection with the 
Brazilian tariffs is the apparently honest attempt to 
place the heaviest duties on luxuries. This is a laudable 
principle to follow if duties are to be levied; but unfor- 
tunately no two people agree as to what are luxuries 
and what are necessities. Most of us think that soap, 
talcum powder, and similar toilet articles are necessi- 
ties, but the Brazilian looks upon them as luxuries! 
Hence we are astounded to find a duty of perhaps a 
dollar levied on a cake of soap or a small can of talcum 
powder. I was also surprised to find that the duties on 
certain outing shirts, belts, etc., are levied on the weight 
per pound instead of on the value or the quantity. In 
connection with this brain-racking Brazilian tariff ques- 
tion, however, it should be said that manufacturers of 
the United States already receive a preferential on 
certain articles. Thus there is no valid excuse why we 
should not do much more business in Brazil than we 
now do, notwithstanding the tariffs, credits, and vari- 
ous other bugbears which English, French, and Ger- 
mans continually hold up before us. 

While traveling about the West Indies and South 
America, I have always made a point of collecting sta- 
tistics on the price of land. One of the best invest- 
ments procurable is land. In fact, I know of no better 
investment than well-selected land suitable for agricul- 
ture or homes. One must not pay too much, of course. 
Fundamental conditions should be studied with the 
same care, when investing in land, as when investing in 
stocks or bonds. If agricultural land is to be bought, 
one should select, not the cheapest on the market nor 



328 THE FUTURE OF SOUTH AMERICA 

the dearest, but that which will net the most wheat, 
corn, or other products, on the capital to be invested. 
If possible, farm land should be bought which will some 
day be wanted for building purposes. 

Imagine my surprise when I was told that good lands 
could be bought in southern Brazil for thirty cents an 
acre. Of course, such lands are some distance from the 
railroad, and in virgin country; but I was assured that 
they have as rich soil as our best lands in Illinois or any- 
where in the great Central West. As these prices for 
land in Brazil are very much lower than for similar 
land in other South American countries, I ventured to 
make these remarks to the Minister : 

"Why is there so little immigration to Brazil when 
the price of land is so low? When in Sao Paulo last 
week, I was offered several large tracts of land, within 
seventy-five miles of the city and within five miles of 
the railroad, at prices ranging from two to four dollars 
an acre. This land, from superficial study, compares 
with land selling in Argentina for sixty dollars an acre. 
In fact, I was offered a large tract of land suitable for 
cattle in the western part of the State of Sao Paulo, 
some fifty miles from the railroad, at thirty cents an 
acre. If half of the good things I hear about Brazil are 
true, what is the reason for these very low prices for 
land, and the comparative unpopularity of Brazil with 
the great immigrating races? Is it due to the reported 
uncertainty of land titles? On account of the strong 
family ties of your race, have titles descended by word 
of mouth, and are they consequently not clear from the 
foreign point of view? Are the reported pests, insects, 
and various diseases, troubling both man and beast, 
another difficulty with which certain sections of your 



BRAZIL 329 

country are handicapped? What steps are being taken 
to eradicate these?' ' 

From the reply, I learned that the government recog- 
nizes that there are questions regarding the validity 
of land titles in certain sections, and that certain foreign 
speculators have suffered therefrom. I was, however, as- 
sured that "if your people from North America will 
come here and honestly attempt to develop our coun- 
try instead of exploiting it, they will be protected. We 
are very anxious to have foreign capital invested here 
in Brazil, and especially in land. We are anxious to 
have colonists brought to this land. Persons who come 
here with an earnest desire to help us succeed will 
themselves succeed. We are in the same position that 
your country was when it was only twenty-six years 
old. Then some of your early settlers in the West had 
trouble with their titles; they suffered from drought, 
and sometimes had their crops destroyed by swarms of 
locusts, grasshoppers, etc. Brazil offers both the oppor- 
tunities and the hardships which your States of Kansas 
and Nebraska offered fifty years ago — no more, no 
less." 

Most writers insist that South America is no place 
for a man without capital. Generally speaking, such 
advice is correct. Don't pull up stakes and take your 
family to South America. If you are a family man 
with money, there is no need of doing it; if you have 
not money, you are better off in our United States 
than in the United States of any other continent. There 
are great opportunities in South America — wonder- 
ful opportunities in scores of different lines. I have in 
mind a dozen separate South American ventures in 
which I know a lot of money could be made. But they 



330 THE FUTURE OF SOUTH AMERICA 

all require capital, whether ranching, farming, manu- 
facturing, or building. After many journeys in many 
countries, I am convinced that a family man without 
capital is better off in our United States of North 
America than anywhere else in the world. 

Generally speaking, there is no middle class in South 
America. In your locality, five per cent, of the people 
are rich, and perhaps ten per cent, are poor; but eighty- 
five per cent, belong to the great middle class of which 
you and I are members. To a small extent such a middle 
class exists (and is continually increasing) in Argen- 
tina. But taking South America as a whole — Chile 
and Brazil in particular — no such middle class exists. 
If you cannot belong to the ten per cent, which in- 
cludes the well-to-do and the government officials, then 
you will be grouped with the lower classes. 

For instance, in New York City you may be a skilled 
carpenter, receiving from four to five dollars a day. 
If so, you belong to the great middle class. Your boy 
and girl have as good a chance socially as have any 
of the children of your locality, rich or poor. All the 
children of your town are judged by what they are 
and how they act. Were you, however, to go to South 
America without capital, you would not be classed as a 
skilled carpenter, and your children would be handi- 
capped thereby. The South Americans don't know 
what skilled carpenters are! If you should go with 
capital, you could open an office as an architect or 
builder; otherwise you would be classed as an ordinary 
laborer, and paid about two dollars a day, which is the 
amount paid Italians for swinging an ax. In other 
words, a bright carpenter with capital could go to South 
America and make more money than he could make 



BRAZIL 331 

in the United States, because, having capital, he would 
at once be classed as an architect or builder. The 
same man, however, without capital, would get less in 
South America, because, not having capital, he would 
be classed as a common day laborer. 

When it comes to ranching and agriculture, it is much 
the same story. It is not necessary to have a great big 
ranch or farm. Because the farms of South America 
are very large, the idea has got about that these are 
the only kind that pay. I am convinced that this idea 
is an error. A small farm should pay as well in Argen- 
tina, Chile, or Brazil, as in Ohio, Indiana, or Illinois. 
The difference comes from the fact that a man with a 
small farm usually has no capital. Hence in Brazil he 
would be treated as a "Dago," while in Ohio he would 
be classed with you and me — so long as he paid his 
bills and behaved himself. 

There is only one possible locality in South America 
which I would except in giving such advice. This is 
the beautiful and temperate area of southern Brazil. 
There is no doubt that in this section lands can be pur- 
chased for five dollars an acre which are as good as any 
land in Illinois selling at two hundred dollars an acre, 
and with a much better climate. The difference is in 
the surroundings and living conditions. The man who 
had been used to Illinois' roads, schools, and protec- 
tion would be very mueh disappointed when he reached 
the frontier of South America. If you buy five-dollar 
land in South America, you will find the same pioneer 
conditions there to-day as existed in Illinois when that 
land sold for five dollars an acre. It is a gun country in 
South America. A man there to-day must have the 
same courage, perseverance, and industry as had the 



332 THE FUTURE OF SOUTH AMERICA 

pioneers who settled our great Central West fifty years 
ago. If you are a young, single man, with good char- 
acter, courage, and a love for wild life, get some one at 
home to stake you and go to southern Brazil. If you 
are made of the right stuff, and know your business, 
you can there make a lot of money both for yourself 
and your silent partner at home. If, however, you are 
a family man, or if you love to have things fairly easy 
and don't like to struggle, then stay at home where you 
now are. Whether you buy land, stocks, or anything 
else, it is impossible to get more than one hundred cents 
for one dollar, all things considered. Security, big 
profits, and ease can't be found together. One of 
these three factors must be sacrificed. Our pioneering 
ancestors forsook the easy paths, and obtained security 
and big profits, but you and I give up the profits for 
security and ease. 

Finally, I wanted to secure some suggestions from 
the government relative to more business between our 
own country and Brazil. Therefore I asked, in closing: 
"Has your government any special suggestions as to 
what my people can do, other than to cease using the 
name ' America,' further to develop business relations 
between us?" 

At once Doctor Muller replied: "First and foremost, 
your banking friends should organize a Bank of North 
America, in which all your largest banks should be in- 
terested. This should be a large, independent institu- 
tion with headquarters in Rio de Janeiro, and branches 
in Sao Paulo, Santos, Bahia, Pernambuco, and several 
other large cities. Remember that we have in Brazil 
eleven cities of fifty thousand people or more. All the 
other foreign nations have distinct and separate banks 



BRAZIL 333 

of their own, and your country must do likewise. 
Just at present, banking conditions here may be inade- 
quate and antiquated, but this should give a new Bank 
of North America all the better opportunity. Certainly 
you can never expect to get good credit reports from 
English,- German, and other competitive banks." (The 
opening of small branches in South America by banks 
already existing in New York, Chicago, and elsewhere 
cannot be so successful.) 

" At the present time, freight and cable rates are very 
high between Brazil and your country. As our Bra- 
zilian Government runs its own steamship line between 
here and New York, we are not so badly off for trans- 
portation to your cities as are the other South American 
countries. However, this line is being run at a loss, and 
there is room for great improvement in shipping con- 
ditions. We Brazilians gladly welcome all efforts made 
for more and better ships under the so-called l American' 
flag. There is great and immediate need for cheaper 
cable service. At present, there is no direct cable be- 
tween Brazil and your country. Consequently, rates 
are high, and the service seems to be very unsatisfac- 
tory to most of your countrymen. 

"We also need more labor here in Brazil. Foreign- 
ers claim that our labor is very inefficient. If so, you 
North Americans must send down men and machinery 
as well as ships and money." (As soon as the titles to 
their lands are straightened out, immigration to 
Brazil should rapidly increase. Moreover, as the 
patriarchal system of government and ownership of 
land still existing in the interior is gradually broken up, 
there should be great immigration into the interior.) 

"But there is another thing which you people could 



334 THE FUTURE OF SOUTH AMERICA 

do that would serve as a wonderful means of bringing 
us together. It is sort of a pet project of mine. I re- 
ferred to it when in your country in 1913. It is that 
some of the business men representing the alumni of 
Harvard, Yale, Princeton, and your other universities, 
club together and start a real ' American ' college in Rio 
de Janeiro. Here is a great opportunity. Some of your 
churches are doing it in a small way. Mackenzie Col- 
lege at Sao Paulo is making good progress. We need a 
real big affair here in Rio de Janeiro with professors 
from your country teaching the English language and 
the North American ways to our boys." 



CHAPTER XVIII 

Mistakes in Our Latin-American Trade 
Relations 

With a better knowledge of South America, and a 
realization of the opportunities existing in that com- 
paratively undeveloped continent, has come a great 
desire on the part of our business men for further trade 
relations. Up to the present time, we have played little 
part in South America, and we never will play more if 
we continue making the mistakes which have charac- 
terized our policies hitherto. What these mistakes 
have been I shall let the people of South America tell 
for themselves in this chapter. 

First, however, I want to emphasize the fact that the 
development of such trade relations means much to 
every one in the United States and not only to those 
who actually come into contact with foreign relations. 
It is needless for me to explain that ultimately wages are 
subject to the law of supply and demand. Whatever 
labor unions may temporarily accomplish in raising 
wages will be largely offset by increased prices, unless 
manufacturing and distributing costs can be reduced. 
Such results can be accomplished either through greater 
efficiency or increased sales. 

We should all, therefore, work to have our manufac- 
turers sell more goods. Increased orders in any line 
help labor in other lines, and thus aid the general pros- 



336 THE FUTURE OF SOUTH AMERICA 

perity. If we can gain and retain the trade of South 
America, the United States will witness the greatest 
period of prosperity in its history, accompanied by 
higher wages and other things for which we have all been 
working. Every reader of this book has a personal 
interest, therefore, in helping the manufacturers of 
this country to come into closer relations with South 
America. Hence it is up to all of us to help our Ad- 
ministration at Washington, the Pan-American Union, 
and all agencies and individuals endeavoring to bring 
this about. Our ambassadors, ministers, and all others 
connected with the diplomatic and consular service 
deserve our special appreciation, and their work Con- 
gress should recognize by paying greater salaries. 

In discussing our trade relations with South America, 
it must be said at the outset that we have failed to get 
either our due share of the trade of the country or to 
realize and avail ourselves of the opportunities for in- 
vestment in this rich and prosperous land. Unlike the 
other great merchandising and investing countries, we 
in the United States have made no serious attempt to 
study the problems of these countries, and when we 
have tried to get their trade, we have made countless 
mistakes through our ignorance. 

How our manufacturers have failed in comparison 
with the manufacturers of other countries is well illus- 
trated by the following statement of one of my South 
American friends: 

"I have just read an article in a New York magazine 
telling of the great pioneer work which has been done 
in South America by the Standard Oil Company, the 
Singer Sewing Machine Company, the United Shoe 
Machinery Company, and others. The article states 



MISTAKES IN OUR TRADE RELATIONS 337 

that these concerns have quietly been doing business 
here for years and deserve great credit; that 'instead 
of criticising North American manufacturers for 
stupidly neglecting South American trade, we should 
praise them for their great industry and perseverance.' 

"Let me call your attention to the fact that all such 
concerns from the United States have monopolies in 
their lines. This monopoly may come through the con- 
trol of transportation or of patents, or of some other 
exclusive feature; but it is monopoly, nevertheless. 
Such concerns are not depending on their energy and 
efficiency to get business, but on some artificial sup- 
port. In fact, I know of no product in which your 
people have built up a trade in South America in fair 
and equal competition with merchants of other 
nations." 

Time and time again our export merchants are 
accused of stupidity, and I make this emphatic through- 
out this book, for I feel that this point cannot be brought 
home too strongly to our merchants and manufacturers. 

As a typical illustration of this point, I quote a mer- 
chant of Brazil : 

" As your people in the United States buy so much of 
our coffee, they would have a wonderful opportunity 
to secure trade in return, if they were not so stupid. 
Take the question of samples, for instance. About 
six weeks ago, I sent to a New England manufacturer 
for a sample of his sheepskins. Imagine my surprise 
to receive a bill for them. If he had asked me to 
return them, that would have been all right, although 
very unusual. But to be sent a bill was too much. 
I'm surprised he did not send them with draft at- 
tached ! 



338 THE FUTURE OF SOUTH AMERICA 

"The Germans have not only given us all the samples 
we want, but they buy our goods and take samples 
back to Germany to show the German manufacturers 
what we like to buy and use. Custom officers have 
even told me that the samples which the Germans took 
home even exceeded the samples that they bring to us. 
In fact, they do not need to use samples at all, for they 
can point to our goods and say : ' We will deliver these 
here in your store, freight, duties, etc., fully paid, for 
so many dollars per gross.' Your salesmen are too 
stupid to figure that way. They will give us a price 
for New York delivery and leave us to figure freight, 
duties, cartage, insurance, exchange, etc. The result 
is that we never take the trouble to figure all this out, 
but buy the goods from Germany instead." 

Perhaps my friend was not quite fair to the salesman 
from the United States. The trouble lies with his 
house. They want the trade, but if a salesman should 
send in an order otherwise than f.o.b., New York, it 
would be turned down. The average manufacturer 
has n't the enterprise to make such calculations. It 
is too foreign to his experience. He wants to do ex- 
port trade on the same conditions as he would with a 
distant State, and cannot or will not understand the 
necessity for doing otherwise. 

Then, too, the United States manufacturer is too 
independent in his attitude along other lines, as is well 
illustrated by the experience of a merchant in Buenos 
Aires. He told me: 

"We made arrangements in 1903 or 1904 to buy 
goods of a New York concern which represented several 
large factories manufacturing machinery, hardware, 
and similar lines. At first we gave them only two or 



MISTAKES IN OUR TRADE RELATIONS 339 

three trial orders, but we liked the goods so much that 
we gave up purchasing from Europe with the idea of 
making all purchases from your country. We just had 
your line well introduced when we suddenly received 
word that 'owing to the increased home demand we 
will be unable to fill more orders for at least six months.' 
When business was dull, they came here to sell their 
surplus; but as soon as the demand in the States re- 
vived, we were cut off ! As our foreign European con- 
nection had been broken, it was very awkward for us to 
pick it up again, especially at a time when they like- 
wise were very busy. No, never again will I be caught 
that way. I much prefer to deal with the English, Bel- 
gian, and German firms who are always dependent 
upon export business, and who are anxious to retain it 
continously. I never again will depend upon concerns 
in the United States who come here only when busi- 
ness is dull to sell us their surplus.' ' 

That the ideas of the people of the countries differ 
from ours, I have emphasized several times. This 
must be understood by the man or the firm striving 
for South American trade, as is well shown by the 
statement of a merchant in Rio de Janeiro : 

" You wonder why it is that we Latin- Americans shun 
new ideas and products, when you people of the north 
seem to seek something just because it is new. Per- 
haps we are wrong, and you are right. The fact, how- 
ever, exists that it is very difficult to introduce any- 
thing new here. Men coming from more up-to-date 
countries are continuously asking why we do this or 
don't do the other, and suggesting that some one could 
make a lot of money by introducing here the more 
modern method. Let me tell you that nearly every 



340 THE FUTURE OF SOUTH AMERICA 

such idea has been tried, but has failed to make money. 
Milkmen in Brazil drive the cows about town and milk 
them at each customer's door, because their customers 
demand such service. The people want to be sure that 
the milk is fresh, and they are willing to pay more to 
have it delivered in this way, which appears quaint 
and out of date to you." 

Another merchant in Rio de Janeiro told me: "The 
greatest opportunity for South American trade is for 
manufacturers of specialties that have a large margin 
of profit. All such who have come here intelligently 
for our trade have made money. The unfortunate ones 
are those who sell staple products with a small margin 
of profit. Unless such manufacturers can give terms 
so as to be able to ask higher prices, or else use South 
America only for a dumping ground for surplus goods, 
they doubtless could make more money with the same 
capital and risk in United States trade. This, of 
course, applies only to present profits. Because the 
manufacturer of staple products might be unable to 
make a profit on South American business at present, 
he may be laying the foundation for a larger business 
later. The ones to lay the foundations now will be the 
first to reap the profits. Some of your people object to 
our market because we demand a different style of 
goods from what they now make. What of it if we 
do?" 

Many of our merchants have had troubles with the 
officials of the various governments, and the charges of 
graft have been freely made. One of my South Amer- 
ican correspondents says of this: 

"North Americans make a stupid mistake by letting 
our government officials blackmail them. It is true 



MISTAKES IN OUR TRADE RELATIONS 341 

that our countries are full of graft, but this rotten con- 
dition of affairs is due to the foreigners who have paid 
this graft. Our government officials are young and 
weak. The English, Germans, French, and others 
desiring concessions of various kinds have tempted 
and ruined them. We natives never give graft unless 
compelled to do so when competing with foreigners. 

"Tell your countrymen that they have a great op- 
portunity to redeem themselves and us also by refus- 
ing to pay graft of any kind to our officials and our 
press. None of us natives like it. Every one suffers 
from it. If you North Americans will unite in refusing 
to be a party to it, we natives will rally to your support. 
Dishonesty is rampant throughout South America, but 
it can be checked only by honest example. If your 
people will set us such an honest example, it will give 
your country great influence down here." 

I have written repeatedly of the necessity of form- 
ing a Bank of North America. A banker in Rio de 
Janeiro gives the following illuminating sidelight on 
the present situation: 

"We are constantly amused to read the speeches 
made by New York and Chicago bankers pleading for 
more cooperation between banks in North and South 
America. These remarks show great ignorance on the 
part of United States bankers. 

"Before there can be any such interchange as you 
suggest, there must first be established cooperation 
among the banks of South America. Even the banks 
of Brazil will not trust one another. The banks of Rio 
de Janeiro will not accept one another's checks, even 
for deposit, until they are first certified. This is why 
no clearing-house exists in Rio. I am an officer of one 



342 THE FUTURE OF SOUTH AMERICA 

of the most progressive banks in the city, but if some 
one should pay you with a check drawn on any other 
bank, and you should send that check here for deposit, 
I would first want it certified. This is another reason 
why the 'U. S. A.' bankers should get together and 
create a great Bank of North America with branches 
all over Latin America." 

But in considering the opportunities offered by this 
great southern continent, we must remember that the 
problem of selling is not the only one of importance. 
This was expressed frankly by one of the business men 
whom I met, and I quote him as follows : 

"The great opportunities in South America to-day 
are opportunities to buy. Not only can much money 
be made by exporting known products, such as rubber, 
cocoa, dyewoods, mandioca, and yerba mate, but there 
must be many unknown products of great wealth to 
be found. Great opportunities await the chemists, 
mineralogists, and botanists who will study our forests. 
There are probably many other products here as valu- 
able as rubber — but to-day they are unknown. 

"Although the jungle is hard to penetrate, yet it is 
not so hot in all parts of the country as it has been 
described. Remember that in certain cities of the 
tropics, people with furs may be seen on one side of 
the streets, and on the other side people with bare feet. 
It is always cool in the breeze and shade. As machinery 
and the gasoline motor are applied to the cultivation 
of cotton, cocoa, etc., the money-making opportunities 
of raising products here for export will be unlimited. 
Don't look only for opportunities to sell, but consider 
also opportunities to produce and buy." 

The idea that one must go "around" South America 



MISTAKES IN OUR TRADE RELATIONS 343 

in order to make a real trip is certainly a mistake. 
From a business point of view, such a trip wastes much 
valuable time, and from a pleasure point of view, one 
goes through much unnecessary discomfort in attempt- 
ing to encircle the continent. If you wish to visit 
South America on business, take the best steamer pro- 
curable, with an upper, outside stateroom on the ocean 
side, and go directly to Rio de Janeiro, Montevideo, 
and Buenos Aires. At present don't worry about the 
West Coast for business. With the exception of Lima 
and Antofagasta, there is little on the west side but 
Valparaiso and Santiago de Chile. These latter two 
places are near together, and can be reached easily 
overland from Buenos Aires. Moreover, Lima, Antofa- 
gasta, and the other growing West Coast towns can now 
be best handled through large commission houses. 
But with regard to commission houses, let me repeat 
the warning of one of my Valparaiso friends, who said : 

"Tell your people that they should either have their 
own representatives in South America or else establish 
reliable and friendly commission houses operated by 
citizens of the United States. Not only are nearly all 
the commission houses here in the hands of Germans 
and other foreigners, but your own exporters in New 
York are mostly Germans." 

The East Coast is active and rich. Argentina is 
worth a visit of itself; Uruguay is also wealthy, though 
small; and Brazil is fast coming to the front. Although 
Brazil is poor to-day, she has vast possessions, and 
some very good cities. For business, I advise you to 
spend most of your time at first in the territory lying 
between Bahia Blanca and Rio de Janeiro. The business 
opportunities are to be found in the temperate zone; 



344 THE FUTURE OF SOUTH AMERICA 

don't now bother with the tropics. When going to 
South America for business, don't go between Novem- 
ber and April, as this is the summer time, when the 
Brazilians and Argentines go away. During January 
and February it is almost impossible to see the import- 
ant South American people on business. 

If you wish to visit South America for pleasure, take 
an express steamer from New York to Colon, pass across 
the Isthmus by train, and take the best Pacific steamer 
to Mollendo, Peru. These boats stop at Callao (Lima) 
and other ports. At Mollendo, the steamer may be 
left and a trip made to Arequipa, Cuzco, and La Paz, 
returning to the coast at either Arica or Antofagasta, 
Chile. In this way, the traveler may gain a good idea 
of the life and habits of the different nationalities. He 
may visit the highest city in the world (La Paz), the 
oldest city in the Western Hemisphere (Cuzco), and see 
the ruins of the Inca civilization, which compare both 
in antiquity and originality with the Pyramids and 
temples of Egypt. 

I have said that business men should not visit the 
East Coast in their summer or our winter. The trip is 
hot and disagreeable at that time. When visiting the 
West Coast, however, the opposite rule should be fol- 
lowed. The weather on the West Coast during our 
summer is always cloudy, cold, and often very foggy. 
During January, February, and March, the weather is 
beautiful. From Cuba to Panama, the sail is hot, but 
from Panama to Mollendo and Antofagasta, it is per- 
fect. There is hardly a cloud in the sky, the moon and 
stars shine wonderfully bright at night, and a cool 
breeze blows all the time. 

I venture to forecast that the great winter trip, some 



MISTAKES IN OUR TRADE RELATIONS 345 

years hence, will be by express steamers via Panama 
down the West Coast direct to Cuzco and La Paz. 
With two weeks ashore in this wonderful country, the 
round trip could be made in six weeks. This would 
give a splendid sea trip in temperate, sunny waters, 
with two weeks away from the world in the Egypt of 
the Western Hemisphere, the last spot of real antiquity 
that has not been spoiled by the tourist. Personally, 
I am very fond of Peru, and believe that a great op- 
portunity exists for switching North American travel- 
ers from Europe and Egypt to Peru and Bolivia. 
Those of us who love Peru should at once unite in 
such a campaign. This travel to the West Coast 
would not only be much appreciated by our people, 
but would result in securing for Peru, Chile, and the 
other countries, the capital they now so much need. 



CHAPTER XIX 

South American Investments 

We have heard a great deal about the opportunities 
for selling goods in South America, but little about the 
chances for profitable investment of money in that terri- 
tory. Yet the two should go together, if we are to hold 
the trade which we are now securing and will secure in 
the future. We hear something about the need of buy- 
ing raw materials from South America, but nothing 
about the necessity of buying bonds which the people 
of the Argentine, Chile, and Brazil must soon issue. 
However, I believe from my study of statistics that 
there may now be a greater opportunity for profit to 
us in the investment of money than in the securing of 
trade. Certainly the great opportunities in South 
America to-day are in the sale of goods for which bonds 
can be taken in exchange, and such business gives the 
sellers a double profit with little competition. 

Up to the present time, the English, French, and Ger- 
mans have financed South America. Not only have 
the business interests of these European countries taken 
bonds in payment for materials, but the investors of 
these same countries are better acquainted with the 
cities of Buenos Aires, Rio de Janeiro, Santiago, Sao 
Paulo, Rosario, and Mendoza than with the cities of 
New York, Chicago, Philadelphia, and Boston. When 
in London and Paris, I have been astonished at the 
public offerings of bonds of South American cities and 



SOUTH AMERICAN INVESTMENTS 347 

corporations of which I had never heard but with 
which the small investors of England and France ap- 
peared to be familiar. This suggests an obvious and 
fundamental difficulty with which we must contend 
when endeavoring to secure Latin-American trade. 

On the other hand, Europe, for some time to come, 
cannot finance these countries as exclusively as in the 
past. This not only inflicts a great hardship upon 
Argentina, Brazil, Chile, and the other countries, but 
also offers us a great opportunity. Certainly only in 
financing these countries can we hope to retain their 
trade. Hence the great importance of our taking South 
American securities, if possible. 

There is as much difference in South American gov- 
ernment bonds as in United States corporation bonds. 
We have formed the unfortunate habit of considering 
all government and municipal bonds good. Therefore 
when we hear of some of them that are not, our faith is 
greatly shattered; yet we do not lose faith in all rail- 
way or public utility bonds because some default. We 
must first learn to treat the bonds of South American 
countries and cities in the same way that we treat our 
own corporation bonds. Because a bond is a " muni- 
cipal" we must not think it is necessarily good. Be- 
cause a municipal bond in Argentine, Chile, or Brazil 
goes wrong, we must not become prejudiced against all 
the municipal bonds of all South American cities. 

The government bonds of Argentina are said to be 
absolutely safe; the government bonds of Brazil, on 
the contrary, are seriously questioned; while the gov- 
ernment bonds of other countries are ranked from safe 
to questionable in about the following order : Uruguay, 
Peru, Venezuela, Bolivia, Paraguay, and Colombia. 



348 THE FUTURE OF SOUTH AMERICA 

I have been rather surprised to find that Latin- 
American municipal bonds as a class are not in very 
good repute among the well-to-do- people of South 
America. For some reason or other, people there have 
not much confidence in this variety of bond. Municipal 
bonds of Latin America are usually not to be recom- 
mended, except in cases where sufficient arrangements 
have been provided in advance to insure the prompt 
payment of interest. The municipal bonds of cities like 
Buenos Aires, Sao Paulo, and Valparaiso are probably 
safe for principal and interest; but a prompt payment 
of interest on even the best Latin-American municipals 
must not always be expected. Hence dealers in such 
bonds should continually watch over their issues and 
be sure that the cities reserve the money with which to 
pay the interest and installments of principal when due. 

There is another class of bonds common in South 
America which are known as " State bonds." In some 
countries, like Brazil, certain of the States are stronger 
financially than the federal government. For instance, 
the State of Sao Paulo — of which the city of Sao 
Paulo is the capital — has very good credit. The na- 
tive people seem to prefer these State bonds to the 
municipal bonds. One objection, however, is that the 
State often guarantees the bonds of one or more of its 
important cities, so that the liabilities of cities and 
States are often considerably mixed up. This in some 
cases also applies to federal affairs. Certain of the City 
of Santiago, Chile, six per cent, bonds which are guaran- 
teed by the federal government are a good example. 
The fact that these can be purchased, " guaranty and 
all," for such a low price, shows how this particular 
issue stands in the eyes of most investors. 



SOUTH AMERICAN INVESTMENTS 349 

The great speculative feature connected with these 
South American securities is the fact that, with very 
few exceptions, they are payable in paper money. The 
few exceptions are certain issues sold in England for 
gold and also payable in gold at a certain fixed rate. 
The regular government, State, and municipal bonds 
are payable in paper and purchasable by paper. For 
instance, a few years ago a one thousand peso, City of 
Santiago, six per cent, bond sold at about par. The peso 
was then worth twenty-two cents; hence such a bond 
would have cost $220 in gold. Two years later, the same 
bond not only had fallen to eighty in price, but pesos 
could be bought for fourteen cents in gold. Thus the 
purchase price of the bond became only $112. There- 
fore, when buying such bonds, the buyer must figure 
both on the financial strength of the government and 
on the prospective value of the currency. It is a fact, 
however, that a sudden depreciation in the currency 
tends to hold up the market price of the bonds, al- 
though this gives only partial relief to the owners. 

Considering how greatly the currency of Chile, 
Brazil, and other countries has depreciated in value 
during the past twenty years, those who now have 
bonds which they purchased years ago must have suf- 
fered great losses. Even though their bonds may sell 
at the same quoted price as when they purchased them, 
yet the paper money which they receive as interest is 
worth perhaps only half as much as formerly. This 
also applies to the one thousand pesos which they will 
receive when the bonds become due. Of course the 
profits are likewise great when the peso is appreciating, 
but currency depreciation at present seems to be much 
more common than currency appreciation. 



350 THE FUTURE OF SOUTH AMERICA 

Another peculiar feature of South American bonds 
is that all of the issues of a given government, State, or 
municipality are not given equal security. The gov- 
ernment, State, and municipal bonds in the United 
States, for instance, are usually plain debentures un- 
secured by any special taxes. If our federal government, 
for example, should default upon one issue, it would de- 
fault upon all; but this is not necessarily the case with 
South American securities. Two federal issues of Brazil 
may pay the same interest and be due at the same 
date, but still may sell at entirely different prices. 
The reason is that the higher-priced issues are secured 
by special import duties. Even in the case of certain 
municipalities, this distinction in securities is in evi- 
dence. Some municipal bond issues, in addition to 
being obligations of the entire city, are secured by some 
special taxes such as income taxes from professional 
men, liquor stores, or lottery tickets. As a rule, such 
specially secured bonds are worth the extra price. 

My South American friends advise me that usually 
the best purchase of any of their securities are the "ce- 
dulas," considering safety, rate of income, and pros- 
pective profit. Interest rates in general are very high 
throughout Latin America. In 1915 good mortgages 
could be secured by local investors in Buenos Aires, 
Santiago, and Rio de Janeiro to net about twelve per 
cent. Most South Americans with money take such 
mortgages in preference to government, State, or mu- 
nicipal bonds. Very few stocks are dealt in by South 
Americans. Their speculative desires have an outlet 
in betting on the races or in buying lottery tickets. 
These cedulas have been invented for the small in- 
vestors who cannot take entire mortgages. They are 



SOUTH AMERICAN INVESTMENTS 351 

much like the Credit Foncier bonds which are issued 
in France and other countries. A mortgage bank 
which sells bonds is formed under government direc- 
tion. It loans the money received from the sale of 
such bonds, in small amounts on mortgage at about 
sixty per cent, of the property value. The borrower 
pays a certain amount each year, which automatically 
pays both interest and principal. The bank uses a 
portion of the interest money to pay the interest on its 
bonds, or cedulas, and the balance for expenses, re- 
serve, etc. The small principal payments are lumped 
together, and the total is used for retiring a portion 
of the cedulas, those to be retired being selected by 
drawings. These cedulas are eagerly sought by in- 
vestors who have not enough money to take entire 
mortgages. Moreover, as they are accepted by the 
mortgage company as cash in payment for principal, 
they are constantly being bought for this purpose, and 
are sold in all South American countries. 

Bolivian cedulas have sold at about fifty, but those of 
the northern countries are also very low in price. Only 
those of Argentina and Chile deserve first considera- 
tion. The Argentine cedulas pay six per cent, interest, 
and now sell at about eighty-five, thus yielding about 
eight per cent. The Chilean cedulas also pay six per 
cent, or more, and sell for even less. The payment of 
the interest and the principal of these should be fairly 
safe, as such cedulas are well secured by good property, 
and the banks are usually well managed. 

I have been especially well pleased with what I have 
learned of the Argentine cedulas. Their chief unfavor- 
able feature is that they are payable — both as to 
principal and interest — in paper money. But so far, 



352 THE FUTURE OF SOUTH AMERICA 

Argentine currency has not depreciated — practically 
the only exception among the many which have. In 
spite of the objections named above, I believe that we 
are justified in considering seriously these cedulas and 
other South American investments at the present time. 
As a matter of fact, I believe that often the investment 
opportunities of Latin America perhaps exceed the 
trade opportunities, although in the long run they must 
go hand in hand. 

Outside of the securities above mentioned, and the 
opportunities for loaning money on mortgages, I have 
been especially impressed with the possible real estate 
speculations. Similar conditions exist in parts of South 
America to buy land at very low prices, as existed in 
our Central West fifty years ago. We know that land 
in Minnesota, Iowa, Kansas, and Nebraska, which now 
sells at one hundred dollars an acre, could be purchased 
fifty years ago for five dollars an acre or even less. 

The farmers of our country have not made their 
money by farming, but rather through the unearned in- 
crement. We hear much about the wealth of farmers, 
but statistics show that there are more mortgages in 
Iowa to-day, or in almost any other State, than ever 
before. The difference is that forty years ago the Iowa 
farmer valued his land at fifteen dollars an acre and had 
it mortgaged for twelve and a half dollars ; while now he 
values it at one hundred dollars an acre and has it 
mortgaged for perhaps twenty-five dollars per acre. 
Forty years ago he considered himself poor, and to-day 
he considers himself rich, but were he obliged to keep 
books, his direct farming operations would probably 
show a loss. 

There is no doubt that history will repeat itself in 



SOUTH AMERICAN INVESTMENTS 353 

South America, especially in Argentina, southern Brazil, 
Uruguay, and Paraguay. Here lands fully as good as 
any land in the United States can be purchased from 
thirty cents to six dollars per acre, according to the dis- 
tance from a navigable river or a railroad. Of course, 
a man needs to be located on the spot to take advan- 
tage of such an investment, and he must be willing to 
suffer the same hardships as the pioneers of our west- 
ern country suffered when they first crossed the Mis- 
sissippi. But the opportunity to make great fortunes 
exists for any one willing to go down there and live and 
become a factor in the community. 

A man with money would probably want to buy pro- 
ductive land. He could purchase a large tract and 
would not feel it necessary to suffer the hardships of a 
pioneer. Then in the majority of cases the interests and 
taxes on unproductive land exceed the natural increase 
in value. Hence a man with money should go to south- 
ern Cordova in Argentina, or some of the territory about 
there, and purchase a producing ranch. Several of these 
ranches of many thousands of acres are now for sale at 
about twenty dollars an acre, and some of them have 
several thousands of acres in alfalfa. Such land will 
pay interest and taxes from the first, and at the same 
time gradually increase in value. 

There has been little suburban development as yet 
in South America, and splendid opportunities exist to 
lay out suburbs beyond growing cities and to build 
residences for sale. In some cities there are wonder- 
ful opportunities for buying inside city property which 
is now rented for stores and offices. Were I to buy such 
property, I would go into the very heart of the city. 
At present, there are but few buildings over three or 



354 THE FUTURE OF SOUTH AMERICA 

four stories high in South America, but the time is soon 
coming when in the center of these cities high office 
buildings will be constructed. This will make the land 
intensely valuable. Therefore I believe that the great- 
est profit is either in the most expensive office-building 
property in the heart of the city, or else in the most 
expensive residential section. 

Buyers of city real estate should always purchase on 
the most expensive residential street and on the end of 
this street which is nearest to the business section. 
Statistics show that' the best of the business section 
gradually creeps up the best residential street. In 
nine cases out of ten, the new and growing best busi- 
ness section of every city to-day is creeping up the 
avenue which was the best residential section twenty- 
five years ago. Hence all over the world the best op- 
portunities in real estate investment exist near the 
junction of the best business and the best residential 
section, where the land is too valuable for residential 
purposes and not yet valuable enough for business 
purposes. 

Of the opportunities in city real estate in South 
America I am convinced, and to illustrate further this 
problem, I quote an interview with a business man in 
Brazil. He said: 

"You North Americans are foolish in waiting until 
cities are rebuilt down here before buying property. 
The greatest opportunities exist in Latin America to- 
day for making money in real estate. Some of our 
cities like Buenos Aires, Sao Paulo, and Rio de Janeiro 
are already rebuilt. Land which sold in Rio for one 
hundred dollars per front foot only in 1905, now sells 
for one thousand dollars per front foot. Other cities, 



SOUTH AMERICAN INVESTMENTS 355 

like Bahia, are now in the process of rebuilding. Here 
land has risen considerably, but not nearly as much 
as it will. 

"The great opportunities to-day for buying real 
estate are in cities like Para and others which I might 
mention. These cities are destined to grow and will 
surely become important. Land, however, can now be 
purchased very cheaply in such cities. Land and build- 
ings in the center of these cities, which are sure to in- 
crease in value, can be purchased to net from twelve 
to fifteen per cent. I have made it a principle to buy 
only productive real estate, but to buy in places which 
have not yet constructed sewer systems nor freed them- 
selves of mosquitoes. As all of our cities are sure to 
do this some day, the great money-making opportuni- 
ties are where it has not yet been done. 

"Yet you North Americans will buy property only 
in cities which have been cleaned up and beautified. 
Then you are obliged always to pay high prices and 
get stuck to boot." 

There is one thing, however, which we United States 
citizens must do before we can succeed like the Eng- 
lish in either investing or trading. We must get the 
respect of these people for our government. We must 
have them learn that United States citizens and prop- 
erty must be protected, and that our citizens must 
have the same justice as Englishmen enjoy. If we are 
unwilling to secure such respect by the exhibition of 
force, then we should work for some international co- 
operative method which will accomplish the same end. 
The poor land-titles in South America could be readily 
overcome if the different nations would cooperate in 
the matter. One thing which has impressed me most 



356 THE FUTURE OF SOUTH AMERICA 

in South America has been the lack of respect which 
the masses have for us and our government. We are 
looked upon as a weak, bluffing nation — afraid to 
fight, and unwilling even to spend money to secure 
justice for our citizens and our property. When this 
condition is changed, South American investments can 
more heartily be recommended. 

The attitude of South Americans toward us and our 
government is well illustrated by the following con- 
versation with one of my friends in Brazil: 

"The greatest handicap investors and manufac- 
turers of the United States have here in South America 
is the fact that our people have no confidence in your 
government at Washington. I am not criticizing your 
President, for I think he has done much to bring about 
a more friendly feeling between the Americas. What 
queers you among our people is their idea that you 
1 Americans' are great bluffers. You talk big, and fight 
with your mouth and pen, but never go any farther. 
Your government sends 'notes' to other governments, 
but you never dare to send a battleship. 

"Our people are like children. If you continually 
threaten a child and argue with him, but go no farther, 
you will soon lose the respect of that child. This is 
the way that you have lost the respect of the Latin- 
American countries. This is why you cannot invest 
money here or extend credits. Our people are afraid 
to cheat an Englishman or a German, but they have 
no such fear with you 'Americans.' They know that 
your government will not back you up to secure justice. 
Either see that your government adopts the big-stick 
policy used by the English, or else have it work for the 
organization of some sort of an inter-nation which shall 



SOUTH AMERICAN INVESTMENTS 357 

supervise and protect persons of other nations, their 
ships, and their investments when outside the domains 
of their fatherland." 

I close these rambling chapters on the future of 
South America with this last suggestion, as it is worthy 
of the most careful consideration. When we realize 
that conflicts between nations to-day are largely due 
to the results of foreign-trade complications, we wonder 
if permanent peace can ever come until such competi- 
tion for foreign markets is placed under joint control 
and on equal terms for all great nations. This would 
necessitate the use of an inter-nation trade flag and a 
certain international organization for shipping, bank- 
ing, and some of the other features of foreign trade. 
Such a plan, however, would not call for any political 
union of the nations, nor bring about other complica- 
tions which are evident in most international plans. 
Furthermore, such a move would be toward the elimi- 
nation of the causes of war and not an attempt to en- 
force peace without the removal of the underlying 
causes. Certainly statistics suggest that world peace 
is coming ultimately through economic channels rather 
than through judicial and arbitral, as most people 
think will be the case. 

But one closing word on the Future of South America. 
The great need of all Latin America is for a strong and 
industrious middle class. Place five million farmers in 
these countries, and the future of them all is assured. 
But until there is a stronger middle class, the govern- 
ments will continue weak, the banks will remain poor, 
the lands undeveloped, the minerals untouched, the 
water powers unharnessed, and the future of South 
America will differ little from the past. 



STATISTICS 



CUBA 

Area 45,883 Sq. Miles 

Approximate population 2,300,000 



Buys from 



United States . . 
United Kingdom . 

Spain 

Germany .... 

France 

Other countries . 

Total .... 



$53,000,000 

15,000,000 

9,000,000 

8,000,000 

6,000,000 

19,000,000 



$110,000,000 



Consisting 

Cereals .... 
Cotton goods . . 
Meat products . 
Machinery . . . 
Iron and steel . . 
Garden products . 
Leather goods 
Other imports 



of 

$16,000,000 

12,000,000 

12,000,000 

11,000,000 

6,800,000 

5,500,000 

5,500,000 

41,200,000 



Total 



$110,000,000 



Sells to 



United States . 
United Kingdom 
Germany . . . 
France .... 
Other countries 



Total 



$143,000,000 

11,290,000 

5,600,000 

2,400,000 

7,710,000 



$170,000,000 



Consisting of 



Sugar $120,000,000 

Tobacco .... 35,000,000 

Fruits 5,000,000 

Woods and min- 
erals 6,500,000 

Other exports . . 3,500,000 



Total 



$170,000,000 



Approximate exports $170,000,000 

Approximate imports 110,000,000 

From the United States 53,000,000 



STATISTICS 



359 



PANAMA 

Area 32,800 Sq. Miles 

Approximate population 419,029 



Buys from 

United States . . $4,650,000 

United Kingdom . 2,080,000 

Germany .... 820,000 

France 220,000 

Other countries. . 2,230,000 



Total $10,000,000 



Consisting of 



Vegetable products 
Animal products . 
Textiles and manu- 
factures . . . . 
Mineral products . 
Chemicals and drugs 

Liquors 

Machinery . . . 
Other imports . . 



$2,500,000 
1,500,000 

1,500,000 
960,000 
410,000 
390,000 
190,000 

2,550,000 



Total $10,000,000 



Sells to 
United States . . $2,800,000 



Total $2,800,000 

Consisting of 

Balata . 

Bananas 

Cocoa 

Cocoanuts . . . [ $2,800,000 

Copper . 

Panama hats 

Other exports 

(Panama exports to other 
countries are unimportant.) 



Approximate exports $3,000,000 

Approximate imports 10,000,000 

From United States 4,650,000 



360 



THE FUTURE OF SOUTH AMERICA 



VENEZUELA 

Area 393,976 Sq. Miles 

Approximate population 2,685,606 



Buys from 



United States 
Great Britain 
Germany . . 
France . . . 
Netherlands . 
Other countries 



$6,800,000 
4,200,000 
3,000,000 
2,600,000 
1,600,000 
1,800,000 



Total $20,000,000 

Consisting of 

Cotton goods . . $5,000,000 

Machinery . . . 2,000,000 

Flour 1,000,000 

Rice 600,000 

Drugs and medicines 600,000 

Butter 400,000 

Lard 400,000 

Paper (printing 

and other) . . . 200,000 

Other imports . . 9,800,000 



Total $20,000,000 



Sells to 



United States 
France . . . 
Germany . . 
Great Britain 
Other countries 



$10,000,000 
6,800,000 
3,900,000 
2,000,000 
2,300,000 



Total . . . . . $25,000,000 

Consisting of 

Coffee $15,000,000 

Rubber 2,000,000 

Cacao 2,000,000 

Hides 1,500,000 

Other exports . . 4,500,000 



Total $25,000,000 



Approximate exports $25,000,000 

Approximate imports 20,000,000 

From the United States 6,800,000 



STATISTICS 



361 



COLOMBIA 

Area 438,436 Sq. Miles 

Approximate population 5,032,00 



Buys from 



United States 
Great Britain 
Germany . . 
France . . . 
Other countries 



$8,000,000 
8,000,000 
4,000,000 
2,000,000 
6,000,000 



Total $28,000,000 

Consisting of 

Textiles ..... $10,000,000 
Foodstuffs .... 3,000,000 

Metals 3,000,000 

Machinery ... 2,000,000 
Drugs and medicines 1,000,000 
Other imports . . 9,000,000 



Total $28,000,000 



Sells to 



United States 
Great Britain 
Germany . . 
France . . . 
Other countries 



$16,000,000 

4,000,000 

2,000,000 

1,000,000 

11,000,000 



Total $34,000,000 



Consisting of 



Coffee . . . 
Coal . . . . 
Hides . . . . 
Bananas . . 
Panama hats 
Other exports 



$17,000,000 
7,000,000 
3,000,000 
2,000,000 
1,000,000 
4,000,000 



Total $34,000,000 



Approximate exports $34,000,000 

Approximate imports 28,000,000 

From United States 8,000,000 



362 



THE FUTURE OF SOUTH AMERICA 



ECUADOR 

Area 116,000 Sq. Miles 

Approximate population 1,500,000 



Buys from 



United States 
Great Britain 
Germany . . . 
France . . . , 
Other countries 



$3,000,000 
3,000,000 
2,000,000 
1,000,000 
1,000,000 



Total $10,000,000 



Consisting of 

Textiles $4,000,000 

Foodstuffs .... 2,000,000 
Other imports . . 4,000,000 



Total $10,000,000 



Sells to 



United States 
France . . . 
Great Britain 
Germany . . 
Other countries 



$4,000,000 
4,000,000 
2,000,000 
1,500,000 
1,500,000 



Total $13,000,000 



Consisting of 



Cocoa beans 
Rubber . . 
Coffee . . , 
Ivory nuts 
Panama hats 



$9,000,000 

900,000 

700,000 

1,000,000 

1,400,000 



Total $13,000,000 



Approximate exports $13,000,000 

Approximate imports 10,000,000 

From United States 3,000,000 



STATISTICS 



363 



PERU 

Area 679,600 Sq. Miles 

Approximate population 4,500,000 



Buys from 



Great Britain 
United States 
Germany . . 
France . . . 
Other countries 



$7,000,000 
6,000,000 
5,000,000 
2,000,000 
5,000,000 



Total $25,000,000 



Consisting 

Metals and manu- 
factures 
Cottons . 
Foodstuffs 
Dry goods 
Woolens 
Silks and linens 
Other imports 



of 

$5,000,000 
4,000,000 
3,000,000 
2,000,000 
2,000,000 
1,000,000 
8,000,000 



Total $25,000,000 



Sells to 



Great Britain 
United States 
Germany . . 
France . . . 
Other countries 



$12,000,000 

10,000,000 

3,000,000 

2,000,000 

10,000,000 



Total $37,000,000 

Consisting of 

Copper and min- 
erals ...... $10,000,000 

Sugar 7,000,000 

Cotton 5,000,000 

Hats 2,000,000 

Wool 2,000,000 

Guano 1,000,000 

Other exports . . 10,000,000 



Total $37,000,000 



Approximate exports $37,000,000 

Approximate imports 25,000,000 

From United States 6,000,000 



364 



THE FUTURE OF SOUTH AMERICA 



BOLIVIA 

Area 708,195 Sq. Miles 

Approximate population 2,200,000 



Buys from 



Great Britain 
Germany . . 
United States 
South America 
Other countries 



$4,900,000 
4,000,000 
3,900,000 
6,700,000 
3,500,000 



Total $23,000,000 

Consisting of 

Manufactures . . $9,000,000 

Food 3,000,000 

Other imports . . 11,000,000 



Total ...... $23,000,000 



Sells to 



Great Britain 
Germany . . 
France . . . 
United States 
Other countries 



$26,000,000 

4,000,000 

2,000,000 

150,000 

4,350,000 



Total . . . . . $36,500,000 

Consisting of 

Tin $16,000,000 

Rubber 4,000,000 

Foodstuffs .... 3,750,000 
Other exports . . 12,750,000 



Total $36,500,000 



Approximate exports $36,500,000 

Approximate imports 23,000,000 

From United States 3,900,000 



STATISTICS 



365 



CHILE 

Area 291,500 Sq. Miles 

Approximate population 3,500,000 



Buys from 

Great Britain . . $39,000,000 

Germany .... 33,000,000 

United States . . 17,000,000 

Other countries . 31,000,000 



Total 



$120,000,000 



Consisting of 

Cotton goods . . $14,000,000 

Iron and steel . . 13,000,000 

Coal 18,000,000 

Machinery . . . 16,000,000 

Woolen goods . 8,000,000 

Other imports . . 51,000,000 



Total 



$120,000,000 



Sells to 



Great Britain . 
Germany . . . 
United States . 
Other countries 

Total . . . 



$55,000,000 
28,000,000 
25,000,000 
32,000,000 

$140,000,000 



Consisting of 

Soda nitrate . $100,000,000 
Copper and other 

minerals . . . 23,000,000 
Animal products. 7,000,000 
Vegetable products 7,000,000 
Other exports . . 3,000,000 



Total 



$140,000,000 



Approximate exports $140,000,000 

Approximate imports 120,000,000 

From United States 17,000,000 



366 



THE FUTURE OF SOUTH AMERICA 



ARGENTINA* 

Area 1,139,979 Sq. Miles 

Approximate population 7,000,000 



Buys from 

Great Britain . . $115,000,000 

Germany .... 62,000,000 

United States . . 57,000,000 

France 36,000,000 

Other countries . 138,700,000 



Total 



$408,700,000 



Consisting of 

Iron and steel . . $40,000,000 

Cotton goods . . 35,000,000 

Coal 25,000,000 

Railway material 15,000,000 

Automobiles . . 5,000,000 

Other imports . 288,700,000 



Total 



$408,700,000 



Sells to 

Great Britain . . $117,000,000 

Germany .... 52,000,000 

France 35,000,000 

United States . . 31,000,000 

Other countries . 234,000,000 



Total 



$469,000,000 



Consisting of 

Wheat $94,000,000 

Wool 56,000,000 

Hides and skins . 40,000,000 

Frozen beef . . 35,000,000 

Flax ...... 33,000,000 

Corn 21,000,000 

Other exports . . 190,000,000 



Total 



$469,000,000 



Approximate exports $469,000,000 

Approximate imports 408,700,000 

From the United States 57,000,000 

* For complete details of what Argentine buys see the final 
pages of this book. 



STATISTICS 



367 



PARAGUAY 

Area 171,815 Sq. Miles 

Approximate population 800,000 



Buys from 

Germany .... $1,500,000 

Great Britain . . 1,300,000 

United States . . 300,000 

Other countries. . 4,400,000 



Total $7,500,000 

Consisting of 

Textiles $1,500,000 

Food 1,000,000 

Hardware .... 900,000 

Other imports . . 4,100,000 



Total $7,500,000 



Sells to 



Argentina . . , 
Germany . . , 
Other countries , 



$3,400,000 
1,000,000 
1,150,000 



Total $5,550,000 

Consisting of 

Fruits $1,200,000 

Hides 1,000,000 

Woods ...... 800,000 

Other exports . . 2,550,000 



Total $5,550,000 



Approximate exports $5,550,000 

Approximate imports 7,500,000 

From the United States 300,000 



368 



THE FUTURE OF SOUTH AMERICA 



URUGUAY 

Area 72,210 Sq. Miles 

Approximate population 1,100,000 



Buys from 

Great Britain . . $13,000,000 

Germany .... 8,000,000 

United States . . 6,000,000 

Other countries. . 23,000,000 



Total $50,000,000 



Consisting 

Food products 
Textiles . . . 
Iron and steel 
Lumber . . . 
Coal and oils 
Drinks . . . 
Chemicals . . 
Other imports 



of 

$8,000,000 
8,000,000 
4,500,000 
3,000,000 
4,000,000 
2,000,000 
1,000,000 

19,500,000 



Total $50,000,000 



Sells to 



France . . . 
Germany . . 
Great Britain 
Argentina . . 
United States 
Brazil . . . 
Other countries 



$9,000,000 
8,000,000 
7,000,000 
5,000,000 
3,000,000 
3,000,000 

30,000,000 



Total $65,000,000 

Consisting of 

Wool $27,000,000 

Hides 9,000,000 

Meats 10,000,000 

Farm products . . 2,000,000 

Fats 2,000,000 

Animals .... 1,000,000 

Other exports . . 14,000,000 



Total $65,000,000 



Approximate exports $65,000,000 

Approximate imports 50,000,000 

From the United States 6,000,000 



STATISTICS 



369 



BRAZIL 

Area 3,218,130 Sq. Miles 

Approximate population 20,000,000 



Buys from 



Great Britain . 
Germany . . . 
United States . 
France .... 
Other countries 



Total 



$76,000,000 
53,000,000 
48,000,000 
28,000,000 

121,000,000 



$326,000,000 



Consisting 

Iron and steel . . 
Flour and wheat . 
Cotton goods . . 
Cars and carriages 
Electrical machin- 



ery ... 
Leather goods 
Other imports 

Total . . 



of 

$57,000,000 
26,000,000 
25,000,000 
15,000,000 

6,000,000 

5,000,000 

192,000,000 



$326,000,000 



Sells to 

United States . . $142,000,000 

Germany .... 52,000,000 

Great Britain . . 43,000,000 

France 35,000,000 

Austria-Hungary 18,000,000 

Argentina . . . 13,500,000 

Other countries . 59,000,000 



Total 



$362,500,000 



Consisting of 

Coffee $226,000,000 

Rubber 76,000,000 

Hides and skins . 13,000,000 

Yerbamate . . 10,000,000 

Cacao 7,000,000 

Tobacco .... 7,000,000 

Other exports . . 23,500,000 



Total 



$362,500,000 



Approximate exports $362,500,000 

Approximate imports 326,000,000 

From the United States 48,000,000 



370 THE FUTURE OF SOUTH AMERICA 

THE ARGENTINE 
FINANCIAL AND ECONOMIC GROWTH, 1904-1913 



1913 



1904 



Per cent 
Increase 



Population 

National debt 

National currency in 

U. S. gold equivalent . 
Gold in conversion fund 

National revenues . . . 
National expenditures l . 

Import duties 

Per cent import duties to 

national revenues . . 
Per cent import duties to 

value of imports . . . 

Value of exports .... 

Value of imports . . . 

Value of total foreign 

commerce 

Exports to United States 
Imports from United 

States 

Total foreign commerce 

with United States . . 

Agricultural exports . . 
Per cent of total . . . 

Exports of animal industry 
Per cent of total . . . 

Railroads : 

Mileage 

Capitalization .... 
Gross earnings . . . 



7,704,396 
$525,493,137 

349,448,817 
253,906,836 

148,266,329 

171,246,935 

84,540,316 

48.2 

20.8 

$466,436,836 
406,484,585 

872,921,421 

22,086,622 

59,843,093 

81,929,715 

290,632,365 
62.2 

$159,947,388 
34.3 



20,660 

.,310,882,563 

135,832,416 



5,190,725 

$416,020,801 

173,047,569 
53,591,186 

80,142,185 
82,753,041 
38,874,436 

46.9 

21.5 

$254,832,764 
180,694,068 

435,626,832 

9,854,399 

23,909,948 

33,464,347 

145,021,931 
56.8 

$101,645,252 
39.9 



12,000 

$587,520,972 
60,159,418 



48 
26 

101 
373 

85 
106 
117 



83 
124 

100 

124 

153 

144 

100 

57 



72 
123 
125 



Includes expenditures for public works. 



STATISTICS 371 



DETAILED STATEMENT OF ARGENTINA'S IM- 
PORTS FOR AN AVERAGE YEAR 

Sgold 

1 Coal 28,323,946 

United Kingdom 98.3% 

Other countries 1.7 

2 Colored wove prints 12,875,730 

United Kingdom 40.0% 

Italy 38.5 

Germany 8.9 

Belgium 7.3 

France 2.6 

Spain 2.0 

Other countries 0.7 

3 Sackcloth 12,154,046 

British Possessions 52.3% 

United Kingdom 43.0 

Other countries 4.7 

4 Naphtha, impure 11,931,840 

United States .-. . 85.6% 

Mexico ■ . a 11.1 

Other countries 3.3 

5 Pitch pine 9,128,164 

United States 98.9% 

Other countries 1.1 

6 Portland cement 7,936,071 

Belgium 52.2% 

United Kingdom 15.0 

France 13.2 

Other countries 19.6 

7 Woolen cloths 7,092,134 

United Kingdom 63.2% 

Germany 15.9 

France 12.8 

Italy 4.1 

Belgium 2.7 

Other countries 1.3 



372 THE FUTURE OF SOUTH AMERICA 

Igold 

8 Galvanized iron 6,683,860 

United Kingdom 84.4% 

Germany 6.5 

United States 4.7 

Belgium 2.7 

Other countries 1.7 

9 Pig and sheet iron 6,378,999 

Germany 47.4% 

Belgium 34.4 

United Kingdom 9.7 

United States 7.1 

Other countries 1.4 

10 Steel rails 6,263,680 

United Kingdom 31.8% 

Germany 29.6 

United States . . 26.1 

Other countries 12.5 

11 Machinery (various kinds) 6,210,438 

Germany 46.4% 

United Kingdom 21.8 

United States 13.5 

Other Countries 18.3 

12 Automobiles 5,232,604 

France 36.8% 

United States 19.3 

Germany 16.3 

Italy 9.5 

Other countries 18.1 

13 Yerba mate 5,215,289 

Brazil 100.0% 

14 Railway material 5,041,415 

United Kingdom 72.1% 

Other countries 27.9 

15 Railway wagons 5,038,666 

United Kingdom 47.8% 

United States 14.1 

Germany 13.8 

Other countries 24.3 



STATISTICS 373 

Sgold 

16 Wire and cables for electric purposes 4,945,631 

Germany 46.6% 

United Kingdom 40.9 

Other countries 12.5 

17 Bleached cotton goods 4,841,056 

United Kingdom 78.3% 

Italy 12.7 

Germany 3.0 

Belgium 2.2 

France 2.1 

Other countries 1.7 

18 Olive oil 4,304,094 

Italy 62.0% 

Spain 31.3 

Other countries 6.7 

19 Wrought iron . 4,234,929 

United Kingdom 58.0% 

Germany 21.4 

Belgium 12.6 

Other countries 8.0 

20 Iron columns and beams 4,161,520 

Germany 54.1% 

France .".".. 22.0 

Other countries 23.9 

21 Cotton prints . .■ . 4,119,377 

United Kingdom 67.5% 

Italy 13.1 

Germany 10.5 

Other countries 8.9 

22 Sugar, refined . 57,981,385 

Austria-Hungary 57.6% 

Germany 31.3 

France 10.4 

Other countries 0.7 

23 Woolen and mixed goods 549,973 

United Kingdom 67.9% 

Germany 16.0 

Italy 8.5 

France 4.1 

Other countries ' . . . 3.5 



374 THE FUTURE OF SOUTH AMERICA 

Sgold 

24 Parcel post 3,612,669 

United Kingdom 31.9% 

France 27.2 

Germany 20.1 

Italy 17.6 

Other countries 3.2 

25 Ordinary wine (in casks) 3,520,546 

Spain 42.4% 

Italy 37.0 

France 20.0 

Other countries 0.6 

26 Locomotives 3,486,324 

United Kingdom 75.6% 

Other countries 24.4 

27 Cleaned rice 3,431,570 

Italy ■ 50.0% 

Holland 25.3 

British Possessions 11.0 

Spain 7.3 

Germany 4.8 

Other countries 1.6 

28 Vermouth (in bottles) 3,363,600 

Italy 74.3% 

France 25.5 

Other countries 0.2 

29 Spruce 2,964,094 

United States 50.6% 

Canada 30.9 

Other countries 18.5 

30 Silk cloths 2,852,401 

France 56.8% 

Germany 12.8 

Italy ■ . . 11.8 

United Kingdom 11.7 

Other countries 6.9 

31 Furniture 2,764,924 

United States 25.1% 

Austria-Hungary 21.7 

United Kingdom 15.3 

France 14.8 

Germany 14.0 

Other countries 9.1 



STATISTICS 375 

S gold 

32 Spare parts of machinery 2,734,468 

United States 29.1% 

Germany 25.5 

United Kingdom 21.7 

Belgium 10.9 

Other countries 12.8 

33 Spare parts of carriages and automobiles .... 2,654,635 

France 31.7% 

Germany 30.7 

United Kingdom 20.6 

Other countries 17.0 

34 Lubricating oils 2,554,625 

United States 56.8% 

United Kingdom 24.5 

Russia 11.2 

Other countries 7.5 

35 Material for sanitary purposes 2,292,357 

United Kingdom 86.5% 

Other countries 13.5 

36 Tobacco (other than Havana) 2,194,590 

Brazil 73.3% 

United States 23.5 

Other countries 3.2 

37 Galvanized wire 2,125,538 

Germany 61.7% 

United States 23.3 

United Kingdom 11.0 

Other countries 4.0 

38 Sheep supplies 2,114,656 

United Kingdom 92.7% 

United States 5.0 

Other countries 2.3 

39 Petroleum 2,046,900 

United States 99.9% 

Other countries 0.1 

40 Galvanized iron pipes 2,024,902 

United Kingdom 62.0% 

Germany 22.9 

United States 12.0 

Other countries 3.1 



376 THE FUTURE OF SOUTH AMERICA 

Sgold 

41 Cheese 2,018,016 

Italy 74.5% 

Switzerland 8.3 

Holland 7.6 

France 7.0 

Other countries 2.6 

42 Patent medicines 1,994,524 

France 56.1% 

Italy 14.3 

United States 11.4 

Germany . 7.3 

United Kingdom 5.5 

Other countries 5.4 

43 Cotton socks ' . . . 1,972,078 

Germany 80.0% 

France 14.0 

Other countries 6.0 

44 Jewelry (fine) . . . 1,934,502 

Germany 44.4% 

France 33.6 

Other countries 22.0 

45 Reapers 1,907,142 

Australia 46.9% 

United States 34.7 

Canada 16.5 

Other countries 1.9 

46 Sheet glass 1,887,113 

Belgium 54.3% 

United Kingdom 29.1 

Other countries 16.6 

47 Paper for newspapers 1,844,962 

United States 35.9% 

Germany 34.4 

Norway 14.5 

Sweden 13.6 

Other countries 1.6 

48 Watches (other than gold) 1,821,701 

Switzerland 41.8% 

Germany 27.7 

Italy 1.7 

Other countries 28.8 



STATISTICS 377 

Sgold 

49 Coffee 1,774,255 

Brazil 98.0% 

Other countries 2.0 

50 Cotton and silk goods 1,682,660 

France 36.4% 

United Kingdom 34.0 

Germany 15.6 

Italy 9.2 

Other countries 4.8 

51 Spun cotton, unbleached 1,671,248 

Italy . 43.0% 

United Kingdom 19.1 

Holland V 14.0 

Belgium 12.5 

Other countries . 11.4 

52 Sisal twine 1,668,611 

United States 92.2% 

Other countries . 7.8 

53 Iron pipes (other than galvanized) 1,597.608 

United Kingdom 59.9% 

Germany 26.6 

United States 8.2 

Other countries 5.3 

54 Sugar, unrefined 1,529,367 

Germany 99.9% 

Other countries 1 

55 Cotton lace 1,498,213 

United Kingdom 37.5% 

Germany 35.1 

Switzerland 9.8 

France 8.4 

Italy 7.2 

Other countries 2.0 

56 Household utensils 1,477,148 

Germany 57.9% 

France v . 12.3 

United Kingdom 8.9 

Sweden 5.6 

United States 4.1 

Austria-Hungary 4.0 

Other countries 7.2 



378 THE FUTURE OE SOUTH AMERICA 

Sgold 

57 Railway cars 1,454,376 

United Kingdom 89.7% 

Other countries 10.3 

58 Threshing machines 1,427,100 

United States 63.1% 

United Kingdom 33.4 

Other countries 3.5 

59 Iron and steel manufactures 1,413,010 

United Kingdom 38.0% 

Germany 27.2 

United States 14.1 

France 12.1 

Other countries 8.6 

60 White pine 1,406,879 

United States 75.2% 

Canada 16.5 

Other countries 8.3 

61 Wheels and axles 1,389,581 

United Kingdom 73.1% 

United States 17.5 

Other countries 9.4 

62 Steel sleepers 1,382,210 

United Kingdom 43.7% 

Germany 29.3 

United States 20.0 

Other countries 7.0 

63 Cotton goods 1,337,436 

Germany 46.5% 

France 29.3 

United Kingdom 13.1 

Other countries 11.1 

64 Bolts and nuts 1,331,724 

United Kingdom 36.5% 

United States 24.3 

Belgium 16.0 

Germany 14.4 

Other countries 8.8 

65 Sand (for building purposes) 1,313,904 

Uruguay 99.8% 

Other countries 0.2 



STATISTICS 379 

$gold 

66 Cotton and woolen goods 1,313,904 

United Kingdom 42.0% 

Germany 26.8 

Belgium 11.8 

France 9.5 

Italy 8.1 

Other countries 1.8 

67 Ploughs 1,296,922 

United States 91.8% 

Other countries 8.2 

68 Pianos 1,293,020 

Germany 79.9% 

France 5.6 

United States 4.8 

United Kingdom 4.2 

Other countries 5.5 

69 Bags of sack cloth 1,287,194 

United Kingdom 72.8% 

British Possessions 16.6 

Italy 6.0 

Other countries 4.6 

70 Perfumery 1,283,783 

France 76.6% 

United Kingdom 10.3 

Germany 6.5 

Other countries 6.6 

71 Woolen goods 1,258,790 

Germany 43.7% 

France 28.8 

United Kingdom 20.0 

Other countries 7.5 

72 Paper for printed matter 1,256,255 

Germany 82.9% 

United Kingdom 6.0 

Austria-Hungary 3.2 

Italy 2.0 

Other countries 5.9 

73 Sardines 1,246,154 

Spain 64.2% 

Norway 21.0 

Other countries 14.8 



380 THE FUTURE OF SOUTH AMERICA 

Sgold 

74 Wax candles 1,239,453 

Belgium 30.8% 

United Kingdom . 27.6 

Holland 21.6 

Germany 7.6 

Italy 7.6 

Other countries 4.8 

75 Malt 1,231,832 

Austria-Hungary 91.3% 

Germany 8.4 

Other countries 0.3 

76 Sewing machines 1,227,126 

United States 59.2% 

Germany . 20.0 

United Kingdom 19.2 

Other countries 1.6 

77 Tin plate 1,218,248 

United Kingdom 90.2% 

Other countries 9.8 

78 Cigars (other than Havana) . 1,215,266 

Italy 70.6% 

Switzerland 16.9 

Holland 8.6 

Other countries 3.9 

79 Printed books 1,212,209 

Spain 40.6% 

Italy 26.6 

France 13.2 

United Kingdom 8.8 

Germany 5.8 

Other countries 5. 

80 Cotton oil 1,183,076 

United States 99.0% 

Other countries 1.0 

81 Tartaric acid 1,147,353 

Germany 37.8% 

Italy 36.1 

United Kingdom 10.9 

France 10.2 

Other countries 5.0 



STATISTICS 381 

$ gold 

82 Tea 1,128,846 

China 37.7% 

British Possessions 31.4 

United Kingdom 28.7 

Other countries 2.2 

83 Dynamos and electric motors 1,127,491 

Germany 45.1% 

United Kingdom 41.4 

Other countries 13.5 

84 Copper manufactures . 1,118,170 



ermany 35.9% 



United Kingdom 30.3 

France 13.2 

Other countries 20.6 

85 Unbleached cotton goods 1,102,564 

United Kingdom 73.5% 

Italy 21.9 

Other countries 4.6 

86 Tramway material 1,091,550 

Germany 56.1% 

United Kingdom 23.3 

Belgium . . _ 14.9 

Other countries 5.7 

87 Boilers 1,087,556 

United Kingdom 86.7% 

Germany 7.6 

Belgium 1.8 

Other countries 3.9 

88 Colored cotton yarn 1,043,997 

HoUand 34.7% 

Italy 31.6 

Belgium 17.5 

Germany 8.6 

Other countries 7.6 

89 Earthenware tiles 1,028,435 

United Kingdom 44.4% 

Germany 19.6 

Belgium 13.2 

Other countries 22.8 



382 THE FUTURE OF SOUTH AMERICA 

Sgold 

90 Glassware 1,018,210 

Germany 41.5% 

Belgium 23.5 

France 22.7 

Other countries 12.3 

91 Printed pamphlets 1,017,155 

United Kingdom ....;...... 56.9% 

Germany 16.9 

Other countries 26.2 

92 Linen cloth 1,001,915 

United Kingdom 51.1% 

Belgium 21.2 

Germany 11.22 

France . . . . 12.66 

Other countries 3.82 

93 Colored cotton goods 1,000,043 

United Kingdom . 42.3% 

Spain 15.6 

Germany 14.3 

France 12.9 

Italy 8.4 

Other countries 6.5 

Total $ gold 289,658,391 

Other articles under $1,000,000 in value .... 131,694,151 

Grand total $ gold $421,352,542 



INDEX 



INDEX 



Aconcagua River, 188 

Africa, 27, 304, 314 

Agates, 276 

Agriculture, Cuba, 29; Porto 
Rico, 43; Hayti and Santo 
Domingo, 51 ; Venezuela, 100; 
Colombia, 115; Ecuador, 121 ; 
Peru, 141, 157; Bolivia, 163; 
Chile, 173, 185, 186, 201; 
Argentina, 230; growth of 
in Argentina, 217-218, 251; 
Uruguay, 272, 276; Brazil, 
297, 299; possibilities of in 
So. Am., 2; in Bolivia, 164; 
implements of, 125 

Aigrettes, 102 

Alfalfa, 230, 258 

Algaroba, 231 

Alligator, skins, 121; pears, 
196 

Almonds, 201 

Alpaca, 137, 141 

Alves, President Rodriguez, 
311 

Amazon, 120, 133, 146, 147, 
290, 291, 295, 296, 315, 
319 

Amazonas, 326 

America, Central. See Cen- 
tral America 

American Vanadium Com- 
pany, 142 

Amethysts, 301 



Anachs, Dept. of, 156 

Ancud, 187 

Andes, 119, 123, 129, 133, 142, 
148, 157, 159, 161, 166, 167, 
175, 176, 182, 190, 196, 210, 
211, 217, 289, 290 

Antarctic, current, 129; winds, 
217 

Antilla, 17 

Antimony, 142 

Antofagasta, 2, 161, 172, 192, 
193, 194, 212, 343, 344 

Apiculture, 187 

Arao, 111 

Arauco, 200 

Area, 317 

Architecture, Cuba, 10; San 
Juan, 40; Bogota, 116; Are- 
quipa, 139 

Area of, Cuba, 11, 16; West 
Indies, 37; Santo Domingo, 
48; Hayti, 48; Jamaica, 60; 
Barbados, 64; Bahamas, 70; 
Panama, 73; Venezuela, 98; 
Colombia, 114; Ecuador, 
119; Peru, 127; Bolivia, 
160, 162; Chile, 166; Ar- 
gentina, 216; Paraguay, 260; 
Uruguay, 270, 271; Brazil, 
288 

Arequipa, 138, 146, 344; de- 
scription of, 139-140; archi- 
tecture of, 139; climate of, 
139-140; manufactures of, 
140, 145 



386 



INDEX 



Argentina, 3, 7, 162, 195, 201, 
209, 213, 245, 263, 264, 270, 
271, 273, 281, 286, 288, 303, 
318, 331, 343, 346, 347; 
greatness of, 214; necessity 
of statistics in studying, 
214-215; area, 216; climate, 
217; population, 217; 
growth of agriculture, 217- 
218; cities of, — Buenos 
Aires, 218-224; La Plata, 
224-225; Bahia Blanca, 225; 
Rosario, 225, 226; Mendoza, 
226; Santa Fe, 227; land 
values, 227; cedulas, 227; 
exports, 228; natural re- 
sources, 228-229; cattle, 
230; agricultural products, 
230; timber, 230-231; min- 
erals, 231 ; manufacturing, 
231; railroads, 232; neces- 
sity for U. S. A. investments, 
232; waterways and steam- 
ships, 232-233; necessity of 
capital, 233-234; character 
of population, 234; atti- 
tude toward foreigners, 234; 
immigration, 235; govern- 
ment, 236-238; history, 
238-239; credit situation, 
239-241 ; interview with 
president of, 241-259; trade 
conditions of, 242-243; ne- 
cessity for U. S. A. invest- 
ments in, 244; England's 
investments, 245; German 
methods in, 246; U. S. A. 
policy to get trade in, 247- 
248; money-making possi- 
bilities in, 248-249; growth 
and present condition of, 
249-252; the president on 
immigration, 252; park sys- 
tems, 254; characteristics 



of population, 254-255; great 
natural wealth must be real- 
ized by U. S. A. bankers, 
257-258; an " arrived" coun- 
try, 259 

Arica, 161, 165-166, 168, 172, 
178, 344 

Arizona, 319 

Arrowroot, 70, 294 

Artigas, 273 

Ascatan, 200 

Asphalt, 25, 102, 111 

Assai, 315 

Asuncion, 228, 261 

Atacama Desert, 195 

Austria, 160, 245, 256 

Austrian, 233, 256, 279 

Automobiles, 105, 132, 219, 
223, 228, 254 

Avenida do Rio Branco, 312 



B 



Bahamas, 36, 37, 70; area of, 
70; coralline formation of, 
70; contrasted with Florida, 
70; exports and imports, 
71; sponges, turtles, bas- 
kets, fruits, 71; climate, 71; 
owned by England, 71; 
society in, 71 

Bahia, 292, 303, 307, 308, 312, 
313, 332 

Bahia Blanca, 3, 221, 225, 227 

Balata, 102 

Balboa, 74, 88 

Balmaceda, 170 

Balsams, 261, 294 

Bananas, 26, 43, 51, 60, 93, 115 

Bank of North America, 202, 
258, 332, 346 

Banks, 5, 184, 202, 247; neces- 
sity for U. S. A, banks, 8; of 
Havana, 20 



INDEX 



387 



Barbados, the, 37, 71; aeaof, 
64; population of, 64; loy- 
alty of blacks to England, 64; 
climate, 64; a health resort, 
64; land and population, 65; 
minerals, 65 ; Bridgetown, 
65; exports and imports, 66; 
opportunities for U. S. A. 
citizens in, 66 ; economic hab- 
its of population, 65-66 

Barley, 230 

Baroda, Rajah of, 300 

Barragunda, 299 

Barros-Luco, Seilor Don Ra- 
mos, Pres. of Chile, 194, 195 

Basques, 281 

Beans, Lima, 158, 164 

Bee, Italian, 187; hives, 187; 
culture, 232 

Beef, frozen, 102, 273, 274, 
322; extract, 273, 275 

Belem, 315 

Belgian, 53, 188, 233, 245, 256, 
279, 339 

Belgium, 148, 177, 195, 256 

Belgrano, General, 239 

Bello Horizonte, 299 

Benevides, Pres. Oscar R., 
150, 151, 152, 155 

Berlin, 160, 222 

Bermudas, 37 

Bicycles, 184 

"Big Stick," 5, 247, 248 

Billinghurst, 133, 151 

Bismuth, 142, 231 

"Black Republic," 55 

Blankets, 231 

Blumenau, 322 

Bocas del Toro, 78, 79 

Bogota, 114, 117; architecture 
of, 116; culture of, 116; a 
distributing point, 116-117 

Boletin Official Resumen, 215 

Bolivar, Simon, 114, 132, 160 



Bolivia, 6, 7, 165, 172, 174, 

239, 256, 257, 264, 345, 347; 
area of, 160, 162; physical 
characteristics, 160; history 
of, 160-161; unfortunate 
commercial situation, 161; 
routes of entrance, 161; 
climate, 162; La Paz, 162; 
minerals and agriculture, 
163; opportunities for trade, 
163; possibilities of agri- 
culture in, 164; cities, 164; 
attractions for tourists, 164; 
statistics of, 364 

Boliviano, 6, 7 

Bolivians, 204 

Bombay, 162 

Bombilla, 263 

Bonds, necessity of buying, 

346; government, 347, 350; 

municipal, 347, 348, 350; 

state, 348, 350 
Boots and shoes, 125 
Borates, 142 

Borax, 142, 163, 200, 231 
Borracha, 295 
Boston, 1, 54, 76, 89, 203, 236, 

240, 246, 346 

Braden Copper Company, 198 
Braz, Dr. Wenceslao, 316 
Brazil, 97; size compared with 
U. S. A., 1; coastline of, 1; 
area of, 3; climate of, 4; 
economic future of, 4; 121, 
141, 155, 156, 162, 195, 224, 
228, 245, 253, 256, 262, 264, 
270, 271, 272, 274, 276, 278, 
284, 337, 343, 346, 347, 348, 
349, 350, 353, 354, 356; 
size of, 287-288; physi- 
cal characteristics, 288-289; 
waterways, 289-290; re- 
sources of, 290; population 
of, 290-291; climate, 291- 



388 



INDEX 



Brazil, continued 
293; forests, 294; products, 
294-299; mining, 299-301; 
stock-raising, 301 ; manu- 
factures, 301-303; harbors 
of, 303; history of, 304-305; 
government of, 305-307 ; 
education, 307; railroads, 
307-309; rivers, 309; cities 
of, 309-316; interview with 
Dr. Miiller, 316-334; immi- 
gration, 318; resources of, 
319-321; future of industry, 
322-323; tariffs, 324-327; 
price of land, 327-329; ne- 
cessity for capital in, 329- 
332; development of rela- 
tions between U. S. A. and, 
332-334 

Brazilians, 284 

Breakwaters, Chile, 170 

Bridgetown, 65; description 
of, 66 

Bridgeville, 142 

British Guiana, 97 

British in So. Am., 37, 148, 
176, 179, 233, 256, 273, 279, 
280, 304. See also English 

Brown, Admiral, 239 

Buenos Aires, 182, 214, 215, 
216, 228, 229, 232, 233, 239, 
241, 254, 261, 262, 267, 270, 
308, 343, 346, 348, 350, 
354; size of, 217; history 
of, 217; location of, 218; 
docks, 219; a cleanly city, 
219; transportation, 219; 
automobiles of, 219; news- 
papers, 219; social factors, 
220; hotels, 220; a cosmo- 
politan city, 220; parks, 
220; commerce, 220-221; 
buildings, 221, 223; the 
gayest city in the world, 



222-223; horse racing, 222; 

capitol building, 224, 225, 

226, 227; land values, 227; 

state of, 225 
Buffalo, 76 
Bull fights, 135 
Butter, 102 
Buying, art of, 23 



Caballeros, 49 

Cabanas, 24 

Cables, 5, 172, 247, 333 

Cabot, Sebastian, 238, 261 

Cacao, 25, 52, 102, 115, 123, 
141, 158, 297, 322, 327 

Cachendo, 138 

Cadiz, 10 

Cairo, 162 

Caliche, 176 

California, 4, 142, 167, 173, 
179, 189, 216, 321; com- 
pared with Peru, 127-128 

CaUao, 93, 132, 146, 147; harbor 
of, 130; description of, 130 

Calso, 176 

Camaguey, 17 

Canada, 66, 166, 167, 216, 252, 
283, 324 

Canadians, 109, 318 

Canal, Panama, appearance of, 
72; Gatun Dam and lake, 
72; locks, 72; importance 
of, 73; distances saved by, 
73; history of, 91; 101, 123, 
128, 146, 147, 155, 156, 211 

Canal Zone, 74, 92 

Canaries, 38, 285 

Cano Colorado, 102 

Canto, El, 17 

Cape Fro ward, 210 

Cape Haytien, 56 

Cape Horn, 196, 209 



INDEX 



389 



Cape St. Roque, 285 

Cape Town, 217 

Capital, necessity of in Cuba, 
34; in Peru, 159; in Chile, 
172, 174, 186, 201; Euro- 
pean, in Chile, 181; neces- 
sity for in Chile, 207; Chile's 
attitude toward, 208 ; neces- 
sary for Argentina, 233-234, 
235, 239, 259; protection of, 
247; Brazil, 329-332 

Caracas, 98, 99, 103, 104, 110 

Caras, 118 

Caribbean Sea, 97, 98, 114 

Carib Indians, 70 

Carlos III, 24 

Carmelo, 278 

Carnahuba, 294 

Carnelians, 276 

Carupano, 102 

Casa Blanca, 40, 278 

Castilloa, 296 

Castro, 106 

Cattle, 2; in Cuba, 30; can- 
ning in Cuba, 30; in Panama, 
77, 95; Venezuela, 101, 102, 
105; Colombia, 115, 157; 
Chile, 186, 187, 190, 196; 
Argentina, 222, 225, 228, 230, 
252, 257; Paraguay, 260; 
Uruguay, 272 ; Brazil, 297, 301 

Caucho, 295 

Cedar, 25, 26, 52, 293 

Cedulas, 227, 228, 350-352; 
Bolivian, 351; Argentine, 
351; Chilean, 351 

Cement, 142 

Central America, 296 

Cereals, 322 

Cerro Cristobal, 183 

Cerro, El, 267 

Cerro de Pasco, 141, 146; 
mining company, 142 

Charles V, 93 



Charlotte Amalie, 37; de- 
scription of, 68-69 

Checcacupe, 146 

Chemicals, 201 

Chicago, 204, 207, 226, 242, 
288, 318, 320, 333, 341, 346 

Chile, 2, 6, 7, 125, 135, 142, 
144, 161, 209, 212, 213, 224, 
234, 245, 254, 256, 264, 273, 
276, 318, 330, 331, 345, 346, 
347, 349; the northern part 
of, 165; shape and size, 166; 
physical characteristics, 166; 
climate, 167; manufacturing 
a future industry, 167, 168; 
history, 169-171; constitu- 
tion of, 169-170; govern- 
ment, 171; immigration, 
172; attitude toward foreign- 
ers, 172; Antofagasta, 172- 
173; opportunities for man- 
ufacturing, 173-174, 175; 
necessity for capital, 174; 
deficiencies in our informa- 
tion about, 174-175; ni- 
trates, 175-178; Valpa- 
raiso, 178-180; success of 
Europeans in Chile, 180- 
182; Santiago, 183; atti- 
tude toward U. S. A. citi- 
zens, 184; U. S. A. handi- 
capped by press, 184-185; 
relations between financial 
and physical conditions, 
185-186; products, 186- 
188; railroads, 188; South- 
ern, 189-190; opportunities 
for manufacturers, 191; in- 
vestments in, 191; financial 
conditions, 193-194; Presi- 
dent Barros-Luco, 194-195; 
president's description of, 
195-197; value of nitrates, 
197; disadvantages of ni- 



390 



INDEX 



Chile, continued 

trates, 198; mining in, 198- 
200; agricultural possibili- 
ties, 201; capital needed in 
manufacturing in, 201; ne- 
cessity for U. S. A. banks, 
202-204; characteristics of 
Chilean population, 204- 
207; future depends on 
capital, 207-208; statistics 
of, 365 

Chilean Exploration Com- 
pany, 198 

Chile River, 138 

Chiloe Island, 190 

Chimbote, 146, 156 

China, 27, 245 

Chinchilla, 186 

Chinese, 76, 134, 204; cities, 20 

Chiriqui, 79 

Chlorides, 142 

Christina, 22 

Chubut, 233 

Chuquicamata, 167 

Cibao, 50 

Cienfuegos, 17, 28 

Cinchona, 121, 141 

Citrus, 25, 29, 30, 43 

Ciudad Bolivar, 99, 102, 105 

Climate of, Porto Rico, 42; 
Santo Domingo, 52; Ja- 
maica, 60; Bahamas, 71; 
Panama, 74-75; Colombia, 
115; Ecuador, 123; Are- 
quipa, 139-140; Peru, 129, 
149-151; Bolivia, 162; Chile, 
167; Argentina, 217; Uru- 
guay, 272; Brazil, 291-293 

Clothing, ready-made, 173 

Coal, 2, 111, 122, 130, 141, 
142, 156, 163, 167, 173, 175, 
189, 196, 199-200, 201, 211, 
231, 266 

Cobalt, 196 



Coca, 123, 141, 145, 158, 163 

Cocaine, 145, 147, 163 

Cochabamba, 164 

Cocoa, 102, 105, 123, 125, 147, 
313, 342 

Cocoanuts, 31, 52, 61, 71, 77, 
78, 79, 80-81, 102, 123, 322 

Coffee, 2, 43, 52, 102, 103, 105, 
110, 115, 121, 124, 141, 145, 
147, 158, 163, 262, 291, 297, 
298, 299, 303, 304, 309, 321 

CoUeges, 119, 170, 183,241, 279 

Colombia, 1, 7, 91, 97, 112, 
125, 162, 234, 347; imports 
and exports, 112; feeling 
against the U. S. A., 112; 
necessity of Spanish lan- 
guage in, 113-114; area, 
114; history, 114; physical 
characteristics, 114-115; cli- 
mate, 115; resources, 115; 
agriculture, 115; minerals, 
115; cattle and lumber, 
115; mining possibilities, 
115; means of communica- 
tion, 116; waterways, 116; 
Bogota, 116; railroads, 116; 
a country for tourists, 117; 
social and welfare work, 
117; statistics of, 361 

Colon, city of, 74, 75, 78, 87, 344 

Colon market, Havana, 22 

Colorado, 167, 236 

Columbus, 12, 36, 48, 50, 70, 
97, 114 

Commercial Section of Chilean 
Government, 197, 200 

Commission houses, in Trini- 
dad, 63-64; 343 

Conception, 190, 200 

Concessions, in Venezuela, 107; 
Argentina, 232 

Conductors, women, in Chile, 
179 



INDEX 



391 



Coolies, 62-63 

Copaiba, 102 

Copal, gum, 294 

Copper, 26, 32, 47, 51, 102, 
111, 121, 140, 141, 142, 143, 
144, 156, 163, 167, 175, 189, 
196, 198, 201, 231, 276 

Coquimbo, 199 

Cordova, 353 

Corn, 145, 158, 159, 164, 217, 
218, 225, 230, 258, 276 

Costa Rica, 79, 94 

Cotton, 65, 102, 121, 129-130, 
141, 144, 145, 146, 158, 262, 
297, 299, 303, 321, 322 

Coupe, La, 58 

Credit Foncier, 351 

Credits, 5, 194; Argentina, 
239-241, 242, 247, 253, 255; 
Brazil, 287 

Cristobal, 74, 88, 102 

Cuba, 36, 37, 41, 49, 60, 73, 
114, 157, 245, 272, 274, 344; 
architecture of, 10; igno- 
rance concerning, 11 ; history 
of, 10-12; area of, 11; gov- 
ernment of, 12, 20; geograph- 
ical and historical signifi- 
cance of, 13; dislike for 
U. S. A. in Cuba, 13; sugar 
and the tariff, 14; geog- 
raphy of, 15-16; moun- 
tains of, 16; harbors of, 16, 
17; cities of, 17; rivers and 
streams of, 18; health of, 
18; hurricanes, 19; death 
rate, 19; real estate, 21; 
trade customs, 21; methods 
in business, 22; imports 
and exports, 25; wealth of, 
25, 26; forests of, 26; min- 
erals of, 25, 26: government 
land, 26; possibilities for 
U. S. A. citizens, 28; sales 



representatives for Cuba, 
29; immigration to Cuba, 
29 ; market gardening in, 29, 
30; price of land, 29; ad- 
vantages and disadvan- 
tages for settlers in Cuba, 
30, 31; cattle raising in, 30; 
living conditions in, 30; 
manufacturing, 33 ; mer- 
chandising, 33; investments 
in, 33; necessity of capital 
in, 34; wages, 34; future of, 
35; statistics of, 358 

Cuban legation, 26 

Cuenca, 122 

Curacao, 37 

Curupuy, 231 

Cuvidor, 312 

Cuzco, 138, 140, 142, 344, 345; 
valley of, 145 

D 

Dairying, 301 

Danish, Islands, 37; 69, 233 

David, 79 

Democracy, principles against 
the development of foreign 
trade, 5 

Denmark, 195, 256 

Diamantina, 300 

Diamonds, 300, 301; the Re- 
gent, 300; Estrella do Sul, 
300 

Divi-divi, 102, 103 

Docks, Buenos Aires, 221; 
Bahia Blanca, 225; Rosario, 
225; Montevideo, 268 

Dollar diplomacy, 5 

DoUars, 193, 194, 207 

Dom Pedro, 305 

Dom Pedro II, 305 

Drake, Sir Francis, 38 

Dress, American idea of, 46 



392 



INDEX 



Droughts, 229 

Drugs, 102, 125 

Du Pont, 174 

Dutch, the, 37, 49, 233, 256, 

279, 304, 313 
Duties, export, 177 
Dyewoods, 52, 115, 261, 342 
Dynamite, 173 



E 



Earthquakes, 2, 36, 61, 70, 134, 

178, 226 
East Coast, 2; fertility of, 2; 
size of, 2, 3; climate, 3; 
advantages and disadvan- 
tages, 2 
East Indies, Dutch, 245 
Economic possibilities, table- 
lands of North, 1; West 
Coast, 2 
Ecuador, 2, 7, 129, 147, 162, 
234; sanitary conditions of, 
118; opportunities in, 118; 
history of, 118; constitution 
of, 119; institutions of learn- 
ing, 119; area, 119; popu- 
lation, 119; Guayaquil, 120; 
railroads, 120; river trans- 
portation, 121 ; products, 
121; agricultural, 121; min- 
erals, 121; manufactures, 
122; Quito, 122; educa- 
tional institutions, 122; cli- 
mate, 123; cacao, 123-124; 
Panama hats, 124; tagua 
palms, 125; commerce, 125; 
future of, 125; opportuni- 
ties for U. S. A. citizens in, 
126; statistics of, 362 
Education, 122, 279, 307 
Egypt, 164, 166, 344, 345 
El Cerro Santa Lucia, 183 
El Tofo, 199 



Elections, 9. See Government 
Electricity, 143, 178, 219, 261; 

opportunities in, 105 
Electric roads, 116, 178, 184, 

261, 308 
Electrification of railroads, 188 
Embroideries, 231 
Emeralds, 115, 142 
Emperor William II, 322 
England, 41, 64, 106, 125, 144, 

153, 171, 179, 191, 194, 245, 

314, 347. See also Great 

Britain 
English, the, in So. Am., 62, 

66, 134, 136, 174, 179, 182, 

184, 202, 203, 211, 215, 218, 
220, 236, 239, 240, 241, 242, 
246, 247, 255, 257, 271, 281, 
283, 284, 291, 333, 339, 341, 
346, 355, 356. See also 
British 

Estradas, 294 

Europe, 180, 181, 189, 191, 194, 
220, 233, 279, 282 

Europeans, 179, 180, 184, 185, 
235, 248, 264, 268, 285 

Exchange, means of, 5; dollar, 
8; sterling, 8 

Explosives, 173 

Exports from U. S. A. to Cuba, 
25; of Santo Domingo, 52; 
Barbados, 66; Bahamas, 
71; Venezuela, 102; Colom- 
bia, 113; Ecuador, 125; 
Bolivia, 164; Chile, 167, 

185, 186, 202; Argentina, 
228, 233, 249-250, 272; 
Paraguay, 265; Uruguay, 272 

F 

Failures, U. S. A. and Argen- 
tina compared, 243 

Farming, . opportunities in 
Cuba, 25; intensive, 186- 



INDEX 



393 



Feathers, 102 
Ferro-vanadium, 142 
Fever, yellow, 18, 309, 311 
Figs, 196, 201 
Flax, 218, 230 
Florida, 12, 216, 217 
Flour, 102, 125, 130 
Food-stuffs, 125, 185, 186, 218, 

272 
Foreign Commercial Guide to 

So. Am., 294 
Forests, Cuba, 26; Colombia, 

115; Peru, 141, 156, 186; 

Chile, 187, 190, 196, 201; 

Argentina, 230, 231, 234; 

Paraguay, 260; Uruguay, 

276, 277; Brazil, 294 
Fort-de-France, 37, 68 
Fortifications, Havana, 24; 

Guantanamo, 25; San Juan, 

39 
France, 26, 125, 177, 191, 256, 

294, 314, 318, 347, 350 
Franciscans, 127 
Fray Bentos, 275, 278 
Freedom, of speech, 136; ships, 

247 
Freezing plants, 228 
French, the, in So. Am., 37, 

49, 68, 113, 153, 184, 215, 

233, 239, 242, 255, 256, 265, 

279, 284, 304, 341, 346 
French Canal Company, 74 
Frias, 123 
Fruits, 102, 115, 121, 158, 187, 

196, 201 
Fur, 186, 211 
Furniture, 173 
Fustic, 102 

G 

Galloway, frigate, 194 
Gardens, Botanical, 135, 189, 
220; Zoological, 135, 220 



Gary, 15 

Gas, 172, 178, 219 

Gatun, Dam, 72; Lake, 72 

Gaucho, 235, 281 

Georgia, 272 

Germans, the, in So. Am., 4, 
53, 85, 94, 109, 136, 148, 153, 
174, 176, 179, 180, 182, 184, 
202, 203, 212, 215, 220, 233, 
234, 236, 239, 240, 241, 244, 
245, 246, 247, 255, 256, 257, 
264, 265, 279, 281, 291, 333, 
338, 339, 341, 343, 346, 356 

Germany, 26, 106, 125, 160, 
177, 191, 194, 195, 256, 276, 
314, 318, 322, 338 

Ginger, 294 

Glass, 173 

Goats, 272; skins of, 102, 121, 
130, 187 

Goethals, Colonel ; 93 

Gold, 26, 47, 50, 102, 105, 111, 
121, 140, 141, 142, 144, 156, 
163, 168, 196, 199, 231, 276, 
300 

Goods, style of, 340 

Gorgas, Colonel, 93, 120 

Government of, Cuba, 12, 20; 
Jamaica, 60; Barbados, 64; 
Bahamas, 71; Ecuador, 119; 
Peru, 136; Bolivia, 160, 161; 
Chile, 169-171; Argentina, 
236-238; Uruguay, 279-280; 
Brazil, 305-303 

Graft, 9, 85, 236, 341 

Grain, 251 

Granada, New, 114, 118 

Gran Chaco, 232 

Granite, 142 

Grape fruit, 71 

Grapes, 230, 276 

Graphite, 276 

Great Britain, 26, 148, 177. 
See England 



394 



INDEX 



"Great Railway of Venezuela," 
104 

Greece, 245, 256 

Greeks, 256 

Grenadine Confederation, 114 

Growth, financial and eco- 
nomic of Argentina, 370 

Guano, 141 

Guanta, 102 

Guantanamo, 20, 25 

Guayaquil, 93, 119, 120, 121, 
122 

Guayas, 121 

Guiana, 1; British, 97 

H 

Hacendados, 273 

Halifax, 216 

Hamilton, 37 

Harbors of, Cuba, 16, 17; Vene- 
zuela, 100; Brazil, 303 

Harvard University, 135, 140, 
317, 333 

Hats, Panama, 124; straw, 
130 

Havana, 10, 16, 17; health of, 
18, 28, 30, 37, 120; descrip- 
tion of, 19-20; improvements 
in, 19; streets of, 19; the 
Prado of, 19; banks, 20; 
buildings, 20; suburbs of, 
20; size, 20; hotels, 20; 
density of population, 22; 
markets of, 22; Central Park 
of, 23; Morro Castle, 24; 
fortifications of, 24-25 

Hawkins, Admiral, 38 

Hay, 196 

Hayti, 36, 37, 47; opportuni- 
ties in, 47, 48; area of, 48; 
population of, 49; com- 
pared with Santo Domingo, 
49-50; gold in, 50-51, 55, 



56; necessity of immigra- 
tion, 59, 60 

Health in Cuba, 18; precau- 
tions for, 18 

Hebrews, 234 

Hectares, 251 

Hemp, 125 

Henequen, 25 

Heron plumes, 102 

Hevea, 295, 296 

Horses, 272 

Hides, 102, 115, 121, 164, 228, 
230, 265 

History of, Cuba, 11-12; West 
Indies, 37; Santo Domingo, 
48; Colombia, 114; Ecuador, 
118; Peru, 132, 133; Bolivia, 
160-161; Chile, 169-171; 
Buenos Aires, 217; Argen- 
tina, 238-239; Paraguay, 
260; Brazil, 304, 305 

Holland, 106, 130, 195, 256, 286 

Homesteads, 159, 252 

Honduras, 124 

Honey, 25, 187 

Honolulu, 73 

Horse racing, 222 

Hotels, 20, 146, 220 

Huarez, 156 

Hudson Bay, 217 

Hurricanes, 19 



lea, 145 

Iguassu Falls, 228 

Illinois, 260, 321, 328, 331 

Imataca, 111 

Imbirussa, 299 

Immigration, 149, 152, 172, 

181, 190, 229, 234, 235, 252, 

256, 259, 260, 265, 280, 281 
Imports, Cuba from U. S. A., 

25; Santo Domingo, 52; 

Barbados, 66; Bahamas, 



INDEX 



395 



Imports, continued 

71; Venezuela, 104; Colom- 
bia, 113; Ecuador, 125; Bo- 
livia, 163; Chile, 185, 202; 
Paraguay, 264 

Incas, 114, 118, 127, 132, 138, 
164, 165, 168, 183, 255, 344 

Independence, Argentine Dec- 
laration of, 239 

India, 299 

Indiana, 260, 321 

Indians, Paraguay, 3, 263 
Cuba, 12; Porto Rico, 41, 50 
Carib, 69; Venezuela, 100 
Colombia, 114, 116; Peru 
134, 136, 139, 145, 148 
Bolivia, 160, 162; Chile 
167, 175, 196, 199, 201 
Strait of Magellan, 209, 211 
Argentina, 218; Uruguay 
270, 280; Brazil, 291, 295 
300, 304 

Indigo, 65, 261, 294 

Interest, 46, 211, 310, 350 

Inter-Nation, 248, 357 

International, Banking Cor- 
poration, 78; Harvester 
Company, 318 

Investments, So. Am., 4, 5; in 
Cuba, 33; Chile, 191; neces- 
sity for U. S. A. in Argentina, 
232, 244; England's, 245; 
profits to be gained, 346; 
Europeans and, 346-347; re- 
lation between trade and, 
346-347; government and 
municipal bonds, 347, 348; 
state bonds, 348; risks in 
exchange, 349; security of, 
350; cedulas, 350-352; real 
estate, 352-354, 355; neces- 
sity of respect for U. S. A. 
government to secure, 355- 
357 



Iodine, 177 

Iowa, 352 

Iparia, 146 

Iquitos, 146, 147, 290 

Ireland, 189 

Irish, 236 

Iron, 25, 26, 32, 47, 51, 111, 

121, 125, 140, 167, 175, 196, 

199, 201, 300 
Ironclads, 170 
Irrigation, 2, 144, 145, 146, 

152, 156, 157, 159, 164, 217, 

226, 259 
Islands, English, 7; Danish, 

37; East Indian, 296 
Italian, 187, 227, 233, 236, 

244, 252, 253, 256, 257, 291, 

330 
Italy, 106, 235, 256 
Ivory, vegetable, 125, 147. 



Jamaica, 7, 36, 37, 42, 71, 76 J 
description of, 60; area of, 
60; government of, 60; de- 
velopment of, 60; railroads, 
60; climate, 60; sugar on, 
60; United Fruit Company 
in relation to, 60-61; Kings- 
ton, 61-62; price of land, 
62 

Japan, 142 

Japanese, 109, 134, 172 

Jerked Beef, 272, 274 

Jesuits, 304 

Jipijapa, 124 

Jockey Club, Buenos Aires, 
222 

Journey to, So. Am., 342-343; 
time of year to make, 343, 
344; for business, 343, 354; 
for pleasure, 344; future of 
tourist travel, 345 



396 



INDEX 



Junta de Agricultura, 274 
Junin, Dep't of, 141 

K 

Kapok, 121 

Kansas, 329, 352 

Kerosene, 102 

Key West, 16, 25, 216 

Kid skins, 102, 130 

King John, of Portugal, 305 

Kingston, 36, 37, 61-62 

Kingstown, 69 



Labor organizations, possibili- 
ties for, 6 

Labrador, 289 

Laces, 231 

La Guayra, 97, 98, 99, 102, 
103, 104 

Lake Merim, 278 

La Nation, 223 

Land, cheap, 3; government 
in Cuba, 26 ; prices in Cuba, 
29; buying in Cuba, 30, 33, 
34; Porto Rico, 43, 44; 
Santo Domingo, 58; Ja- 
maica, 62; Trinidad, 63; Ar- 
gentina, 227; Buenos Aires, 
227; Uruguay, 265, 276; 
Brazil, 322, 327; 352-355 

La Paz, 138, 140, 161, 162, 
163, 164, 165, 344, 345 

La Plata, 221, 224; Province 
of, 238; River, 216, 217, 
225, 272, 278, 281 

La Prensa, 223 

Latex, 294 

Latin-American trade rela- 
tions, 1; temperament, 24, 
85; fundamental character- 
istics of, 86 



Laurel, Chilean, 187 

La Vela, 102 

Lead, 121, 141, 142, 156, 196, 
231, 276 

Leather, 125 

Leeward Islands, 37 

Legere, 151 

Lick Observatory, 183 

Lignum-vitse, 231 

Lima, 2, 128, 130, 132, 139, 
145, 158, 159, 168, 343; de- 
scription of, 132-134; cli- 
mate, 133; architecture of, 
134-135; university of, 135; 
as headquarters for sales, 
135 

Lime, 142 

Limon, 146 

Linseed, 230, 249, 250, 251 

Lions, sea, 192, 193 

Lisbon, 285 

Liverpool, 1, 93, 96, 147 

Living, art of, 23; conditions 
of in Cuba, 30 

Llamas, 162, 165 

Llanos, 115, 136, 260 

Locusts, 230 

Logwood, 26 

Loja, 122 

London, 73, 96, 222, 241, 285, 
346 

Los Angeles, 310 

Lota, 189, 190, 191 

Lottes, 45 

Louisiana, 14 

Lowell, President, 317 

Lucern, 251 

Lumber, 302-303 

M 

Machinery, 102, 163; opportu- 
nities in, 109; packing of, 
130, 131 



INDEX 



397 



Mackenzie College, 310, 334 

Madre de Dios River, 146 

Magellan, Strait of, 93, 187, 
190, 191; scenic features of, 
209; physical characteris- 
tics of, 209, 210; Punta 
Arenas on, 210-212; class 
of goods desired in, 211— 
213; future of depends upon 
wool industry, 213 

Magnesium, 196 

Mahogany, 25, 26, 52, 113, 293 

Maine, 16 

Maine, The, 13 

Maize, 164, 249, 250, 251 

Malaria, 18 

Manana, 182, 204, 224 . 

Mandarins, 230 

Mandioca, 297, 298, 342 

Manganese, 26, 276 

Mango, 26 

Mangrove, 121 

Manihot, 296 

Manufactures, of East Coast, 
3; Cuba, 33; Santo Do- 
mingo, 52; Venezuela, 106; 
Ecuador, 122; Arequipa, 
140, 145, 146; Chile, 173, 
175, 201; Argentina, 231, 
251; Paraguay, 261; Uru- 
guay, 277; Brazil, 301-302 

Mapajo, 261 

Maracaibo, 99, 102, 103, 111 

Marafion River, 146 

Marbles, 142 

Mar del Plata, 225 

Marie Galante, 38 

Market Central Produce, 230 

Markets, Havana, 22, 23; 
Valparaiso, 179 

Martinique, 37, 67, 113; moun- 
tains of, 67; St. Pierre, 67; 
Fort-de-France, 68; popu- 
lation of, 68; scenery, 68; 



roads, 68; opportunities in, 
68 

Maryland, 271 

Massachusetts, 16, 166, 240, 
281 

Matanzas, 10, 17, 20, 28 

Matto Grosso, State of, 263 

Mayaguez, 39 

Meat, 217, 230; trade of Ar- 
gentina, 249 

Medicines, 102, 125 

Meiggs, 145 

Mendoza, 226, 346 

Mendoza, Pedro, 218, 226 

Menocal, M. G., Pres. of Cuba, 
32 

Mercantile opportunities in 
Cuba, 33 

Mercedes, 278 

Merchandise, packing for So. 
Am., 130-131 

Mercury, 121, 142 

Metric system, 245 

Mexico, 9, 11, 166, 216, 245, 
256, 257, 283, 296, 324 

Misti, El, 140 

Middle class, 235, 330, 357 

Milkmen in Brazil, 340 

Militarists in Peru, 127 

Minas Geraes, 290, 299, 300, 
301, 326 

Minerals of West Coast, 2; 
Cuba, 32; Santo Domingo 
and Hayti, 50-51; Barba- 
dos, 65; Venezuela, 100; 
Colombia, 115; Ecuador, 
121-122; Peru, 141-142, 
156; Bolivia, 163; Chile, 
196, 198; Argentina, 231; 
Paraguay, 265; Brazil, 299- 
301 

Minneapolis, 288 

Missionaries, Santo Domingo, 
55; 127 



398 



INDEX 



Mississippi, 3, 14, 116, 216, 

353 
Missouri, 260 
Mitti, Senor Georg, 223 
Mocha, 49 
Mollendo, 137, 138, 145, 161, 

165, 344 
Molybdenum, 142 
Monazite, 313 
Money, 6, 7; different systems 

of, 7; necessity for stan- 
dardization, 8; Chilean, 193; 

depreciation of, 349 
Money-making, possibilities, 

Argentina, 248-249; Brazil, 

289 
Monroe Doctrine, 184, 283, 

286 
Montana, 146, 147, 157 
Montevideo, 254, 267, 268, 

269, 277, 278, 279, 281, 285, 

288, 308, 343 
Montt, 170 
Moreira Cezar, 312 
Morgan, Ambassador, 317 
Morro Castle, 10, 24 
Morro, El, 165 
Mortality rate of Cuba, 19 
Mt. Meiggs, 145 
Mt. Pelee, 67, 68 
Mt. Washington, 139 
Mules, 272 
Miiller, Dr. Lauro Severiano, 

316, 317, 320, 321, 332 
Mummies, 165-166 
Museums, 183, 219 



N 



Napoleon, 304 
Nassau, 70 

Nations of So. Am., 2 
National Cash Register Co., 
318 



Naudubay, 231 

Nebraska, 329, 352 

Negroes, 12, 41, 49, 62; com- 
pared with coolies, 63; in 
the Barbados, 64, 65; Mar- 
tinique, 68; St. Thomas, 69; 
Venezuela, 99; Colombia, 
116; Chile, 204, 291 

Nevadas, 123 

New England, 16, 74, 162, 
203, 242, 257, 258, 271, 337 

New Hampshire, 16 

New Mexico, 319 

New Orleans, 73, 158, 288, 289, 
315 

Newport, 225 

New Providence, 70 

New York, 10, 43, 52, 70, 73, 
93, 147, 194, 203, 213, 221, 
222, 226, 233, 236, 246, 285, 
288, 318, 333, 338, 341, 344, 
346 

Newspapers, 184, 219, 223, 
224, 230, 285 

Niagara, 117, 228 

Nickel, 196 

Nile, 163 

Nitrates, 2, 142, 165, 167, 170, 
172, 173, 175, 176, 177, 178, 
185, 186, 193, 195, 196-197, 
201, 208 

North Dakota, 271 

Northers, 18 

Norway, 187, 256 

Nueva Palmira, 278 

Nueva Paysandu, 278 

Nuevo Berlin, 278 

Nuts, 125, 294 



O 



Oats, 217, 218, 230, 249, 250 
Obispo Street, Havana, 19 
Official Gazette, 109 



INDEX 



399 



Officials in Cuba, 31 

Officinas, 176 

Ohio, 232 

Oil. See Petroleum 

Olives, 158, 201, 230 

Opera House, Buenos Aires, 
223 

Opportunities, sales, 2; for 
manufacturers, merchants 
and investors in Cuba, 25 
for Americans in Cuba, 32 
33; in West Indies, 37 
Porto Rico, 38; for manu- 
facturers in Cuba, 44, 45 
Hayti, 47, 48; Barbados, 66 
U. S. A. citizens in Barba- 
dos, 66; Martinique, 68 
Panama, 89; Venezuela, 109 
Ecuador, 118, 126; Bolivia 
163; Chile, 191; Paraguay 
265; to buy in So. Am., 342 

Oranges, 26, 29, 230 

Oregon, 216 

Orinoco, River, 99, 111 

Oroya, 146 

Oroya Railroad, 145 

Oruro, 161, 164 

Osorno, 190 

Ostrich breeding, 232 

Otis Elevator Co., 318 

Ouro Preto, 307 

Oysters, 187 

Ozama River, 48 



Pacific, Coast, 178, 216; Ocean, 

166, 238 
Palace, Presidential of Cuba, 

31 
Palm, achilean, 187; oil, 322 
Pampatar, 102 
Panama, City of, 74, 75, 76, 

78; population of , 77; North- 



American interests in, 78; 
suburbs of, 96, 135 

Panama, Republic of, 71, 72, 
113, 120, 124, 128, 146, 344, 
345 ; the Canal, 72 ; distances 
saved by, 73; area, 73; 
distance from U. S. A., 73; 
shape of country, 74; Canal 
Zone in, 74; difficulties over 
situation, 74; climate, 74- 
75; rainfall, 75; old condi- 
tions in and new, 75; death 
rate, 75; importance of, 76; 
merchants, character of pop- 
ulation, 76; cemeteries, 76; 
industries, 77; altitude of 
land, 77; North Americans 
in, 77, 78-80; cocoanut in- 
dustry in, 80-83; attitude 
toward North Americans, 
84; German methods in, 
85 ; differences between Pan- 
ama and U. S. A., 87-88; 
reasons for studying, 88-89; 
opportunities for U. S. A. 
citizens in, 89; history of 
Canal, 91; agreement be- 
tween U. S. A. and, 92; im- 
provements since 1903, 93; 
future of, 93; disadvantages 
of, 94; railroads, 95; statis- 
tics of, 359 

Pan American Union, 150, 323, 
336 

Para, 288, 292, 295, 316, 326, 
355 

Parana River, 218, 226, 228, 
232, 261 

Parana, State of, 263, 264, 302 

Paraguay, 3, 7, 162, 228, 239, 
256, 257, 278, 347, 353; 
situation of, 260; oppor- 
tunities in, 260; area, 260; 
physical characteristics of, 



400 



INDEX 



Paraguay, continued 

260; history of, 261; rivers 
of, 261; Asuncion, 261; re- 
sources of, 261; industries 
of, 262; tea or yerba mate, 
262-265; trade relations of, 
265; opportunities for set- 
tlers, 265; forests and min- 
erals, 265-266; statistics of, 
367 

Paraguay River, 228, 232, 261 

Paraguay tea. See Yerba Mate 

Paris, 220, 222, 285, 346 

Park Palermo, 220 

Parks, 183, 220, 254 

Pasteur, 310 

Patagonia, 167, 209, 213, 216, 
225, 232 

Payata, 12&-130, 144, 146 

Paysandu, 278 

Peaches, 201 

Pearls, 142; fisheries, 100 

Pedregal, 79 

Pekin, 162 

Penn, Admiral, 36; William, 36 

Pennsylvania, 216 

Pepper, black, 294 

Pernambuco, 304, 307, 308, 
313, 314, 332 

Peru, 2, 6, 7, 118, 132, 162, 
165, 170, 171, 174, 186, 195, 
198, 234, 255, 276, 290, 296, 
345, 347; a backward coun- 
try, 127; shape, 127; phys- 
ical characteristics, 127- 
128; population of, 128; 
compared with California, 
127-128; coast of, 128; 
climate, 129; Payata, 129- 
130; CaUao, 130; difficul- 
ties in trading with U. S. A., 
130-131; history of, 132, 
133; boundaries and divi- 
sions of, 133; Lima, 133- 



135; education, 135; re- 
ligious question in, 135; 
characteristics of people and 
government, 136; llamas, 
137; alpacas, 137; Mol- 
lendo, 137-138; Arequipa, 
138-140; resources of, 140- 
141; minerals of, 140; agri- 
culture, 141; forests, 141; 
mining in, 141-143; irriga- 
tion, 144; manufactures, 
145; railroads, 145-146; ho- 
tels, 146; need of capital, 
147; gains of by Panama 
Canal, 147; commerce on 
rivers of, 147-148; com- 
merce, 148; prospects for 
trade, 148; need of immi- 
gration, 149; church and 
state, 149; government, 
149-151; revolutions in, 
150, 152; U. S. A. sins of 
omissions towards, 152-154; 
changes necessary in, 155- 
157; national problems of, 
157; future of sugar in, 157- 
158; future of cotton in, 
158; necessity of capital for, 
159; statistics of, 363 

Peruvian Corporation, 133 

Peso, 7 

Petitgrain, oil of, 262 

Petroleum, 51, 63, 115, 130, 
141, 142, 156, 186, 231, 276 

Philadelphia, 75, 203, 236, 246, 
317, 346 

Philippine Islands, 245 

Pillado, Ricardo, 249 

Pineapples, 25, 71 

Pitch, Trinidad, 63 

Piura, 129, 144, 146; manufac- 
tures of, 130 

Pizarro, 118, 127, 128, 132, 133, 
138, 168, 238 



INDEX 



401 



Plague, 18, 120 

Plata de la. Sec Rio de la 
Plata 

Plants, medicinal, 115 

Platinum, 115, 121 

Plaza, de la, Serior Victorio, 
Pres., 243 

Plymouth, England, 38; U.S.A., 
36 

Poles, 264 

Political conditions, 2, 8. See 
also Government 

Polk, President, 12 

Pomegranates, 196 

Pompeii, 67 

Ponce, 39 

Ponce de Leon, 38 

Population of, West Indies, 
37; Porto Rico, 41; Santo 
Domingo and Hayti, 49; 
Trinidad, 62; Barbados, 64, 
65; Panama, 76; Venezue- 
la, 99, 100; Ecuador, 119; 
Peru, 136; Bolivia, 160, 
162; Chile, 204-207; Ar- 
gentina, 217, 234; attitude 
of Argentina's toward for- 
eigners, 234; characteristics 
of in Argentina, 252-255; 
Brazil, 289, 291 

Portales, Diego, 169 

Porras, Pres't, 87 

Port-au-Prince, 37, 48, 55; de- 
scription of, 56, 57 

Port of Spain, 37, 62, 63 

Port Royal, 36 

Ports, chief of West Indies, 37 

Porto Rico, 36, 37, 272; a 
health and winter resort, 
38; advantages of, 38, 39, 
42; opportunities for set- 
tlers, 39; wages, 39; towns 
in, 41; density of popula- 
tion in, 41; feeling in 



against U. S. A., 41; phys- 
ical characteristics of, 42; 
climate, 42 ; contrasted with 
Santo Domingo and Hayti, 
42, 43; price of land, 43; 
mineral wealth of, 43; fu- 
ture of, 44 

Portugal, 256, 257, 271, 288, 305 

Portuguese, 113, 256, 271, 284, 
291, 304 

Postal System, 119; Union, 53 

Potatoes, 158, 276 

Potosi, 164 

Pound sterling, 6, 8 

Powder, 173 

Prado, Havana, 19 

Press, Associated, 185 

Princeton, 333 

Privilege, law of, 107-108 

Public Buildings, San Juan, 
40; Chile, 170 

Puerto Cabello, 99, 101, 102, 
103 

Puerto Plata, 53, 55, 59 

Puerto Sucre, 102 

Puno, 161 

Punta Arenas, 186, 187, 191, 
210, 216; description of, 
210; bank of, 211; trade of , 
211-212; future of, 213 

Punta Castle, 24 

Punts de Lobos, 200 

Q 

Quebracho. 231 

Quillai, 187 

Quinine, 121 

Quito, 118, 119, 122, 123 

R 

Ragra mine, 142 
Railroads, Santo Domingo, 
53; Jamaica, 60; Panama, 



402 



INDEX 



Railroads, continued 

85; Venezuela, 104; Colom- 
bia, 115, 116; Ecuador, 120- 
121; Peru, 145, 146, 147, 
156; Bolivia, 160, 165, 170; 
Longitudinal, 175; Trans- 
Andean, 184, 211; Chilean, 
188; Argentina, 226, 227, 
230, 231, 232, 252; Para- 
guay, 260, 265; Uruguay, 
266, 271, 276, 277; Brazil, 
307, 308, 309, 319, 322 

Raisins, 196 

Range, Coast, 166, 176, 196 

Rates, freight, 333 

Religion, Santo Domingo, 55; 
Peru, 135 

Republic, use of word, 9 

Republic, Oriental, of Uru- 
guay, 271 

Resin, 261 

Resources, Colombia, 115; Ar- 
gentina, 228-229; Brazil, 
319-321 

Revolutions, 8, 9, 21, 49, 98, 
143, 148, 150, 152, 168, 170, 
177, 236, 237, 305 

Rhode Island, 16, 281 

Rice, 102, 125, 144, 158, 230, 
297 

Rimac River, 133 

Rio Colorado, 232 

Rio de Janeiro, 3, 183, 224, 
288, 301, 302, 303, 304, 305, 

307, 308, 311-312, 314, 332, 
339, 340, 341, 343, 346; state 
of, 301, 326, 354; Light and 
Power Company, 302, 318 

Rio de la Plata, 232, 238 
Rio Grande do Sul, 288, 301, 

308, 322 

Rio Grande, State of, 263 
Rio Negro, 233, 276, 278; 
Province of, 231 



Rio Piedras, 40 

Rivera Station, 278 

Riviera, French, 272 

Root, Elihu, 88, 317 

Ropes, 231 

Rosario, 221, 225, 226, 346 

Rosas, 218 

Rosewood, 293 

Rubber, 102, 103, 110, 115, 

121, 125, 141, 147, 294-295, 

296, 297, 315, 319, 321, 326, 

342 
Rugs, 173, 231 
Rural Association of Uruguay, 

274 
Russia, 27, 245, 256 
Russians, 256 

S 

Sagua la Grande, 17 

Sahara, 189 

Saladero, 275 

Salar Grande de Huanillos, 200 

Sales opportunities, of West 
Coast, 2; Venezuela, 109- 
110; Bolivia, 162 

Salesmen for Cuba, 33; criti- 
cised, 182; necessary for So. 
Am., 287-288; mistakes of, 
328 

Salitral, 146 

Salt, 51, 102, 130, 142, 200, 231 

Salto, 278 

Samples, 337 

San Bias, 79 

San Diego, 128, 310 

San Francisco, 73, 178 

Sanitary conditions, 2; Cuba, 
18; San Juan, 40; Santo 
Domingo, 50; Ecuador, 118; 
Guayaquil, 120; Santiago 
and Valparaiso, 183; Brazil, 
309 



INDEX 



403 



Sanjon, Peace of, 12 

San Juan, Bautista, 37, 38; 
description of, 39-41; forti- 
fications of, 39; streets, 40; 
public buildings, 40; water 
supply, 40; plazas, 40; 
architecture, 40; sanitary- 
conditions, 40; stores, 41 

San Lorenzo, 130 

San Martin, General, 239 

San Salvador River, 278 

Sanshaz, 53 

Santa Catharina, State of, 263, 
316, 322 

Santa Clara, 17 

Santa Cruz, 164 

Santa Fe, 227 

Santa Lucia River, 269 

Santa Rosa, 278 

San Thomas, Hospital, 78 

Santiago de los Caballeros, 53 

Santiago de Chile, 2, 167, 168, 
178, 182, 183, 188, 189, 190, 
194, 203, 205, 224, 346, 348, 
349, 350 

Santiago de Cuba, 10, 16, 17, 
20, 28, 30 

Santiago del Estero, Province 
of, 230 

Santo Domingo City, 36, 37, 
55, 58 

Santo Domingo, Republic of, 
37; opportunities in, 47; 
disadvantages of, 48; his- 
tory of, 48; area, 48; 
mountains, 48; population 
of, 49; revolt of negroes in, 
49; contrasted with Hayti, 
49-50; minerals, 50-51; ag- 
ricultural products, 51; for- 
ests, 52; manufactures, 52; 
imports and exports, 52; 
climate, 52; taxes, 52; atti- 
tude toward capital, 52; 



means of communication, 
52-53; railroads, 53, 54; 
opportunities for settlers, 
54; limits and possibilities 
for the island, 54-55; reli- 
gion of, 55; education, 55; 
price of land in, 58; neces- 
sity for immigration, 59 

Santos, 308, 309, 320, 332 

Sao Paulo, 4, 293, 301, 302, 
307, 308, 310, 311, 313, 320, 
328, 332, 334, 346, 348, 354 

Sao Paulo, State of, 301, 326, 
328, 348 

Sarrapia tree, 104 

Satinwood, 293 

Scarborough, 37 

Schools, 31, 38, 119, 170, 183, 
219, 305, 307, 331 

Seals, 186 

Sechura, 142 

Selling in So. Am., 4 

Sheep, 121, 187, 225, 228, 272, 
273 

Sheep raising, 2 

Ships, foreign, freedom from, 
necessary for U. S. A., 5 

Shoes, 130 

Sierra Maestra, 16 

Silver, 47, 51, 115, 121, 140, 
141, 142, 143, 144, 156, 163, 
164, 168, 172, 196, 199, 231 

Social work, 117 

Society in Bahamas, 71 

Sol, 6, 7 

Solis, Juan de, 238 

Solis theater, 269, 270 

Silk culture, 232 

Singer Sewing Machine Co., 336 

Slavery, 299 

Soriano, 278 

Soufriere, 69 

South America, possibilities 
of, 1; nations of, 1; money 



404 



INDEX 



South America, continued 
of, 6; truth about, 9; direc- 
tion from North America, 
76; attitude of people of 
toward U. S. A., 283-284 

Spain, 10, 24, 26, 36, 37, 50, 
85, 128, 168, 182, 235, 256, 
271, 281, 305 

Spanish, 10, 41, 49, 62, 99, 100, 
113, 114, 118, 134, 149, 151, 
168, 204, 218, 233, 234, 235, 
236, 256, 261, 265, 273, 279, 
280, 285 

Spanish Main, 114 

Spanish War, 42 

Spanish language, importance 
of, 5; labor should insist 
upon study of, 6; for a sales- 
man, 29; Peru, 114, 152-153, 
154; 284 

Spices, 102 

Sponges, 71 

Standard Oil Co., 60, 318, 336 

Stars and Stripes, 221, 279 

Statistics, of money, 6; of com- 
merce, 11; West Indies, 37; 
necessary for fair judgments, 
214; failures in U. S. A. 
and Argentina, 243; Eng- 
land's investments, 245; Ar- 
gentina's trade, 249-250; 
agriculture in Argentina, 
251; Argentina's immigra- 
tion, 256; Argentina's com- 
merce, 256; real estate, 354; 
Cuba, 358; Panama, 359; 
Venezuela, 360; Colombia, 
361; Ecuador, 362; Peru, 
363; Bolivia, 364; Chile, 
365; Argentina, 366, 370- 
382; Paraguay, 367; Uru- 
guay, 368; Brazil, 369 

Stock-raising, 93, 301 

St. Augustine, 39 



St. George's Grenada, 37 

St. John, 37 

St. Pierre, 67 

St. Thomas, 68-69 

St. Vincent, 69-70 

Steamships, 184, 233, 253, 
278, 279, 282, 333 

Stimson, Ambassador, 250 

Stone, lime, 276; sand, 276; 
semi-precious, 276 

Suburbs of, Havana, 20, 30; 
Panama, 96 

Sucre, the, 7; city of, 132, 164 

Sugar, in Cuba, 13, 25, 26, 32, 
43; Santo Domingo, 52; 
Jamaica, 60; Barbados, 64- 
65; St. Vincent, 70; Pan- 
ama, 93, 95; Venezuela, 102, 
105, 110; Peru, 141, 144, 
146, 157-158; Argentina, 
230; Paraguay, 261; Brazil, 
297, 299 

Sullana, 146 

Sulphur, 121, 175, 200, 231 

Sweden, 245, 256 

Swedish, 233 

Swiss, 256 

Sydney, 73 

Syrians, 256, 291 



Table lands of the north, 1; 

possibilities of, 1; prospects 

of trade, 2 
Tacon, 22 
Tagua palms, 125 
Tambo, 146 
Tannin, 187, 265 
Tapioca, 294 
Tariff legislation, of U. S. A. 

against Cuba, 13 
Tariff policy, necessary for 

U. S. A., 4, 15; of England 

and Germany, 4 



INDEX 



405 



Tariffs of Brazil, 303, 304, 324- 

327 
Tasajo, 272 
Taytao Peninsula, 190 
Taxes, Santo Domingo, 52; 

import and export of Chile, 

191 
Texas, 242, 272 
Tea, 158, 262 
Tea, Paraguay, 230. See 

Yerba Mate 
Telegraphs, 53, 105, 116, 119, 

150, 172, 184 
Telephones, 53, 117, 119, 184 
Templades, 123 
Temuco, 190 
Tequendama, 117 
Textiles, 102, 125, 130, 148, 163 
Theaters, 183 
Thorium silicate, 313 
Tierra del Fuego, 180, 209, 211 
Tierras Calientes, 123 
Timber, 201, 230, 231, 265 
Tin, 163, 164, 186, 231, 276 
Tipa, 231 
Titane, 231 
Tititaca, Lake, 161 
Tobacco, 25, 29, 43, 52, 95, 121, 

145, 158, 230, 261, 276, 297 
Tobogo, 37 

Tonka beans, 102, 104, 294 
Tonnage of Argentine com- 
merce, 256 
Topazes, 301 
Torquilla straw, 124 
Torrefaction, 263 
Tortola, 37 
Tourmalines, 301 
Tourists, attractions for, 117, 

163, 164, 228, 344-345 
Trade policy, foreign of 

U. S. A., 4, 15 
Trade prospects, table lands 

of north, 2 



Trade relations of U. S. A. with 
Latin America, 1; Cuba, 11 

Trading, difficulties of, 131- 
132 

Trade Relations, mistakes in 
U. S. A., 335; what the de- 
velopment of means to 
U. S. A. prosperity, 335, 
336; mistakes of U. S. A. 
merchants, 337; independ- 
ence of U. S. A. manufac- 
turers, 338-339; the South 
American point of view, 339- 
340; opportunities for man- 
ufacturers of specialties, 340; 
government officials of So. 
Am., 340-341; U. S. A. 
neglect of banking possibili- 
ties, 341-342; opportuni- 
ties to buy, 342 

Trans-Andean Railroad, 184, 
211 

Treaty between Cuba and 
U. S. A., 20, 21 

Trinidad, 37, 42, 62; situation 
of, 62; population of, 62 
coolie system in, 62-63 
Pitch Lake in, 63; oil, 63 
price of land in, 63; com- 
mission houses in, 63-64 

Tropics, disadvantages of, 30, 
98; effect of, 293 

Truth about So. Am., 9 

Tucuman, 239 

Tungsten, 142, 156, 157 

Turkey, 245 

Turtles, 71 

U 

Ucayali, 146 

United Fruit Company, 60-61, 

78 
United Kingdom, 256 



406 



INDEX 



United Mexican States, 237 

U. S. A. intervenes in Cuba, 
12; tariffs injure Cuba's 
sugar, 14; treaty with Cuba, 
20, 21; citizens in Chile, 181, 
191; in Argentina, 237, 256; 
commerce with the Argen- 
tine, 220, 245 

United States of Brazil, 237; 
Venezuela, 237 

University, of Lima, 135; Chile, 
195; Montevideo, 269, 270; 
State of New York, 310 

United States Steel Co., 318 

United Shoe Machinery Co., 
336 

Uruguay, 3, 7, 239, 256, 264, 
343, 347, 353; Montevideo, 
267-270; size of, 270-271; 
history of, 270, 271; growth 
of, 271; rivers, 272; cli- 
mate, 272; agriculture, 272; 
cattle, 272; sheep, 273; 
improvements in agricul- 
ture, 274; small farms in, 
274; meat industry, 274, 
275; agricultural products, 
275-276; minerals, 276; for- 
ests, 276, 277; manufactur- 
ing, 277; railroads and 
waterways, 277-278; steam- 
ship lines, 278-279; educa- 
tion, 279; government, 279- 
280; population of, 280- 
281; immigration, 282; lack 
of trade with U. S. A., 282; 
future of, 286; statistics, 368 

Usono, 317 



Valdivia, 168, 182, 183; city 

of, 190 
Valencia, 99, 101 



Valparaiso, 2, 73, 76, 93, 135, 
171, 178, 183, 188, 189, 194, 
195, 209, 254, 343, 348 

Vanadium, 142 

Vancouver, 73 

Van Dyck, 139 

Vanilla, 52, 102 

Vegetable ivory, 125, 147 

Vegetation of Brazil, 289 

Venezuela, 1, 7, 94, 162, 234, 
347; situation of, 97; dis- 
advantages of its tropical 
climate, 98; size, 98; phys- 
ical characteristics, 98-99; 
commercial possibilities of, 
99; population of, 99; cities, 
99; harbors, 100; customs 
regulations, 100; character 
of population, 100; occu- 
pations, 100; agriculture, 
100; mining and fisheries, 
100; cattle raising, 101; 
proximity of markets, 101; 
agricultural and forest prod- 
ucts, 102; exports and im- 
ports, 102; ports to enter 
for trade, 103; sugar indus- 
try, 103; transportation 
facilities, 104; water powers, 
104; railroads, 104; wagon 
roads, 104; telegraphs, 105; 
opportunities for automo- 
biles and electricity, 105- 
106; manufactures, 106; 
foreign trade and steamship 
lines, 106; financial condi- 
tion, 106; failure to protect 
capital, 106; concessions, 
107; law of privilege, 107- 
108; sales opportunities, 
109-110; opportunities in 
general merchandising, 110; 
immigration, need of, 112; 
statistics of, 360 



INDEX 



407 



Vermont, 16 

Vicunas, 163 

Vienna, 222 

Villa Dolorosa, 269-270 

Vina del Mar, 179, 205 

Vineyards, 141, 158, 187, 196, 

227 
Virgin Islands, 37, 68-70 
Von Humboldt, 290 

W 

W°ges, in Cuba, 34; Porto 
Rico, 39; Chile, 185 

War, Ten Years', 12; Euro- 
pean, 14 

Washington, 8, 26, 150, 184, 
224, 225, 311, 336, 356; 
state of, 216 

Water power, 2, 104, 143, 201, 
231, 265, 321 

Water ways, 116, 121, 232, 277, 
289-290, 319, 320 

Wax, 187 

Weaknesses of Latin-Ameri- 
cans, 204, 205, 206 

West Coast, economic possi- 
bilities of, 2 

Western Hemisphere, 36, 48, 
55, 218, 316 



West Indies, 15, 36, 60, 61, 62, 
63, 70, 291, 327; statistics 
of, 37; area of, 37; popu- 
lation of, 37; discovered in, 
37; chief ports of, 37 
Wheat, 145, 217, 218, 230, 2.49, 

250, 251, 258, 276 
Wheelwright, William, 221 
Willemstad, Curacoa, 37 
Windward Islands, 37 
Wines, 102, 187, 196, 227 
Wire, barbed, 125 
Wood, Panama, 187 
Wool, 164, 201, 211, 213, 228, 

230, 273 
"Wool" cotton, 144 
Worcester, Dean C, 83 
Wright, Marie Robinson, 299 



Yale University, 333 
Yankee, 174, 315 
Yaqui River, 50 
Yellow fever, 309, 311 
Yerba mate, or Paraguay tea, 
230, 262-265, 342 



Zeballos, Pedro de, 239 






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